Bonacina, Monica; Creti, Anna - In: Economics Bulletin 30 (2010) 2, pp. 1539-1547
This note shows that the pro-competitive effect of pre-commitments is robust to Stackelberg-like market structures. Although our results are in line with Allaz and Vila (1993), the two equilibria differ substantially. Sequential interactions foster a monopolization of the contract market and a...