Article ID Journal Published Year Pages File Type
5060139 Economics Letters 2011 4 Pages PDF
Abstract

We consider a partially integrated industry and examine the effects of contracts with a right of first refusal, whereby the vertically integrated firm has the option to match a quote from an independent supplier to supply an independent downstream firm.

► We consider a partially integrated industry. ► We examine the effects of contracts with a right of first refusal. ► We show such contracts (a) soften downstream competition (b) improve efficiency.

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Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Vertical integration and right of first refusal
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