<marquage typemarq="gras"/> This paper gives a theoretical base to the vertical structure of the distribution network of illicit drugs by using the analysis of vertical relationships and the illegal character of the drug traffic. The model is then used to show how the regulator, through law enforcement costs imposed on...

This article analyzes a simple two-period model where two homogenous manufacturers compete to supply a monopolist retailer. We show that if manufacturers are vulnerable (i.e if they are likely to exit the market in case of insufficient orders in the first period), they may exploit their threat...