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&D investment, and derive predictions on the effects of trust and competition on suppliers' investment and buyers' procurement … - but also with more competitive procurement: trust and rents from reduced supplier competition in the procurement process … automotive industry. Consistent with the model's predictions, higher levels of trust are associated with higher investment levels …
Persistent link: https://www.econbiz.de/10010485523
reflected in the buyer's choice of a more competitive procurement strategy among potential suppliers. -- trust ; hold-up problem …We explore the determinants and effects of trust relationships between upstream suppliers and downstream producers … ; competition ; specific investment ; suppliers ; car manufacturers ; German automotive industry …
Persistent link: https://www.econbiz.de/10009010507
relationships involving higher trust, buyers are able to induce higher investment and more intense competition among suppliers - but …, we show that more trust in a relationship is associated with higher idiosyncratic investment by suppliers and better part … quality - but also with more competition among suppliers. Both associations hold only for parts involving comparatively …
Persistent link: https://www.econbiz.de/10012026390
mutual relationship, is associated with both higher quality of the automotive parts and more competition among suppliers. Yet …We study how informal buyer-supplier relationships in the German automotive industry affect procurement. Using unique … data from a survey focusing on these, we show that more trust, the belief that the trading partner acts to maintain the …
Persistent link: https://www.econbiz.de/10012649766
used in combination. I also show that more competition can magnify the use of reciprocity-based incentives. Moreover, with …
Persistent link: https://www.econbiz.de/10012002999
We explore how inherent preferences for reciprocity and repeated interaction interact in an optimal incentive system. Developing a theoretical model of a long-term employment relationship, we first show that reciprocal preferences are more important when an employee is close to retirement. At...
Persistent link: https://www.econbiz.de/10011718616
Can formal contracts help resolving the holdup problem? We address this important question by studying the holdup problem in repeated transactions between a seller and a buyer in which the seller can make relation-specific investments in each period. In contrast to previous findings, we...
Persistent link: https://www.econbiz.de/10009240848
This paper empirically investigates the advertising competition in the French broadcast television industry within a … oligopoly competition and identify the shape and magnitude of the feedback loop between TV viewers and advertisers. We also … implement a simple procedure to identify the conduct of firms on the market. We find that the nature of competition in the …
Persistent link: https://www.econbiz.de/10011646956
its promises. Moreover, I demonstrate that more intense competition for workers can intensify the use of reciprocity …
Persistent link: https://www.econbiz.de/10012241077
The corporate finance literature documents that managers tend to overinvest into physical assets. A number of theoretical contributions have aimed to explain this stylized fact, most of them focussing on a fundamental agency problem between shareholders and managers. The present paper shows that...
Persistent link: https://www.econbiz.de/10010469958