Article ID Journal Published Year Pages File Type
9549461 Economics Letters 2005 6 Pages PDF
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'.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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