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.

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Year of publication:	2010
Authors:	Zikos, Vasileios ; Kesavayuth, Dusanee
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 30.2010, 4, p. 3018-3025
Publisher:	AccessEcon
Subject:	Input-price contracts \| Input supplier \| R&D \| Spillovers

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Extent:	application/pdf
Type of publication:	Article
Classification:	L0 - Industrial Organization. General ; L1 - Market Structure, Firm Strategy, and Market Performance
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008692946