We present a flexible model of a vertical market where firms with possible oligopsony power procure a key input, combine it with other inputs purchased competitively, and sell a final product to consumers in a market that may have oligopoly power. The model is capable of depicting all forms of...

Private sugar processors in Andhra Pradesh, India use an unusual form of vertical coordination. They issue ‘permits’ to selected cane growers a few weeks before harvest. These permits specify the amount of cane to be delivered during a narrow time period. This article investigates why...