Mitigating Sabotage in Tournament: An Experimental Study

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We analyze the incentives of a vertically-integrated producer (VIP) to engage in “self-sabotage”. Self-sabotage occurs when a VIP intentionally increases its upstream costs and/or reduces the quality of its upstream product. We identify conditions under which self-sabotage is profitable for the VIP even though it raises symmetrically the cost of the upstream product to all downstream producers ...

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ژورنال

عنوان ژورنال: Procedia - Social and Behavioral Sciences

سال: 2013

ISSN: 1877-0428

DOI: 10.1016/j.sbspro.2013.08.410