Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9549461 | Economics Letters | 2005 | 6 Pages |
Abstract
We examine vertical contracting in a perfect information environment. In contrast to McAfee and Schwartz [McAfee, R.P., Schwartz, M., 1994. Opportunism in multilateral vertical contracting: Nondiscrimination, exclusivity and uniformity. American Economic Review. vol. 84, pp. 210-230.] we demonstrate that outcomes are efficient if an upstream monopolist has the choice of requiring upfront fixed fee payments or making them 'optional'.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Catherine C. de Fontenay, Joshua S. Gans,