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- W2294848413 abstract "I study one manufacturer that contracts secretly with two risk averse retailers that face uncertain demand. The need for risk sharing limits the manufacturer’s scope for opportunistic deviations. If retail competition is fierce, the manufacturer’s profit increases with the levels of risk aversion and uncertainty, i.e., there is no trade-off between risk sharing and industry efficiency. The results are consistent with stylized facts from empirical and experimental research on vertical relations, including the negative correlation between vertical integration and uncertainty." @default.
- W2294848413 created "2016-06-24" @default.
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- W2294848413 date "2015-12-21" @default.
- W2294848413 modified "2023-09-27" @default.
- W2294848413 title "Risk sharing mitigates opportunism in vertical contracting" @default.
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