Controlling opportunism in vertical contracting when production precedes sales

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Etat: Public
Version: Author's accepted manuscript
ID Serval
serval:BIB_AF678FFAD46F
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Titre
Controlling opportunism in vertical contracting when production precedes sales
Périodique
The RAND Journal of Economics
Auteur⸱e⸱s
Montez J. V.
ISSN
0741-6261
1756-2171
Statut éditorial
Publié
Date de publication
2015
Peer-reviewed
Oui
Volume
46
Numéro
3
Pages
650-670
Langue
anglais
Résumé
In a make-to-stock vertical contracting setting with private contracts, when retailers do not observe each other's stocks before choosing their prices, an opportunism problem always exist in contract equilibria but public market-wide Resale Price Maintenance (RPM) can restore monopoly power. However other widely used tools which do not fall under antitrust scrutiny and require only private bilateral contracts, such as buyback contracts, also allow the producer to fully exercise his monopoly power. We conclude that a more lenient policy toward RPM is unlikely to affect the producer's ability to control opportunism.
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Création de la notice
14/11/2016 13:33
Dernière modification de la notice
20/08/2019 16:18
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