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Vasileios Zikos and Dusanee Kesavayuth
''Downstream R&D, raising rival's costs, and input-price contracts: a comment on the role of spillovers''
( 2010, Vol. 30 No.4 )
We reconsider Banerjee and Lin [International Journal of Industrial Organization, 2003] by investigating the role of spillovers (or informational flows) for the profitability of input-price contracts in a vertically related industry. We show that spillovers influence the relative magnitude of the main forces operating in the model, which can either reinforce or alter some of the predictions.
Keywords: Input-price contracts, Input supplier, R&D, Spillovers
L1 - Market Structure, Firm Strategy, and Market Performance: General
Manuscript Received : Aug 15 2010 Manuscript Accepted : Nov 13 2010

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