Abstract
We investigate the effects of downstream firms’ managerial incentives on upstream collusion. Downstream profit-and-revenue incentive schemes make upstream manufacturers easier to collude than a pure-profit incentive scheme does when retailers compete in prices. However, the opposite occurs under quantity competition.
Original language | English |
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Pages (from-to) | 97-100 |
Number of pages | 4 |
Journal | Economics letters |
Volume | 118 |
Issue number | 1 |
DOIs | |
Publication status | Published - 2013 |
Externally published | Yes |
Keywords
- collusion
- incentive
- vertical channel
- price and quantity competition