In this short paper we study a competing vertical hierarchies model where the allocation of residual claimancy is … (equilibrium) allocation of residual claimancy is affected by competition in a non trivial manner. More precisely, although revenue … efficient types. Hence, the equilibrium allocation of residual claimancy follows a pro-cyclical rule. …

motivated by the use of residual claimancy in the wine industry. Through comparative static analysis of the Pareto optimal share …