Paying not to sell |
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| Authors: | Emanuele Bacchiega Olivier Bonroy Rania Mabrouk |
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| Institution: | 1. Dipartimento di Scienze Economiche, Alma Mater Studiorum - Università di Bologna, Italy;2. INRA, UMR 1215 GAEL, F-38000 Grenoble, France;3. Université Grenoble Alpes, UMR 1215 GAEL, F-38000 Grenoble, France |
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| Abstract: | In this paper we show that, in the presence of buyer and seller power, a monopolist can enter into a costly contractual relationship with a low-quality supplier with the sole intention of improving its bargaining position relative to a high-quality supplier, without ever selling the good produced by that firm. |
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| Keywords: | L12 L13 L14 |
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