Controlling opportunism in vertical contracting when production precedes sales

Details

Ressource 1Download: Controlling opportunism in vertical contracting.pdf (264.97 [Ko])
State: Public
Version: Author's accepted manuscript
Serval ID
serval:BIB_AF678FFAD46F
Type
Article: article from journal or magazin.
Collection
Publications
Title
Controlling opportunism in vertical contracting when production precedes sales
Journal
The RAND Journal of Economics
Author(s)
Montez J. V.
ISSN
0741-6261
1756-2171
Publication state
Published
Issued date
2015
Peer-reviewed
Oui
Volume
46
Number
3
Pages
650-670
Language
english
Abstract
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.
Web of science
Create date
14/11/2016 12:33
Last modification date
20/08/2019 15:18
Usage data