Relative performance versus market share delegation in a vertically related market

This article, considering relative performance vs. market share delegation in a vertically related market, shows how the order of firms' move and the type of delegation contract would affect the input-pricing decision of the upstream monopolist and examines which delegation contract is a dominant strategy for downstream firms. The major finding is that having considered input-price commitment and delegation decision together, input price-delegation-quantity competition order coupled with relative performance delegation is the dominant strategy for downstream rivals in a vertically related market.