Vertical Contract Disclosure in Three‐Tier Industries*
نویسندگان
چکیده
Consider a three‐tier industry with monopolist supplying manufacturer which sells its product to final consumers through two retailers. Contracts are linear and secret. Hence, upon receiving an out‐of‐equilibrium offer, each retailer must form belief about the identity of deviating upstream firm. This beliefs' specification problem wipes out if Open Book Accounting (OBA) policy is implemented, whereby input price disclosed Under Cournot (Bertrand) competition, OBA increases profits consumer surplus retailers believe that any offer more likely reflect deviation by supplier (by manufacturer).
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ژورنال
عنوان ژورنال: Journal of Industrial Economics
سال: 2023
ISSN: ['0022-1821', '1467-6451']
DOI: https://doi.org/10.1111/joie.12315