Entrepreneurship, as reflected in industry turnover rates, is a central force behind output and productivity growth. However, cross country comparisons suggest that turnover rates are remarkably independent of barriers to business: Singapore, one of the most entry-friendly countries in the...

We consider a partially integrated industry and examine the effects of contracts with a right of first refusal, whereby the vertically integrated firm has the option to match a quote from an independent supplier to supply an independent downstream firm.