Downstream R&D, raising rival's costs, and input-price contracts: a comment on the role of spillovers
We reconsider Banerjee and Lin [International Journal of Industrial Organization, 2003] by investigating the role of spillovers (or informational flows) for the profitability of input-price contracts in a vertically related industry. We show that spillovers influence the relative magnitude of the main forces operating in the model, which can either reinforce or alter some of the predictions.
Volume (Year): 30 (2010)
Issue (Month): 4 ()
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