We present a simple model of criminal decision making and show that at the unique symmetric mixed strategy Nash equilibrium, the probability of committing a transgression (a criminal act or an act of corruption) is positively related to the severity of punishment and negatively related to the...

We show how an upstream firm by using a price-dependent profit-sharing rule can prevent destructive competition between downstream firms that produce relatively close substitutes. With this rule the upstream firm induces the retailers to behave as if demand has become less price elastic. As a...

In several industries downstream competitors form upstream partnerships. An important rationale is that higher aggregate upstream volume might generate efficiencies that reduce both fixed and marginal costs. Our focus is on the latter. We show that if upstream marginal costs are decreasing in...