Abstract

http://ssrn.com/abstract=2033242
 
 

Citations (3)



 


 



Colluding through Suppliers


Salvatore Piccolo


Catholic University of the Sacred Heart of Milan

Jeanine Miklós-Thal


University of Rochester - Simon Business School

May 19, 2012

Simon School Working Paper No. FR 12-07

Abstract:     
This article investigates downstream firms' ability to collude in a repeated game of competition between supply chains. We show that downstream firms with buyer power can collude more easily in the output market if they also collude on their input supply contracts. More specifically, an implicit agreement on input supply contracts with above-cost wholesale prices and negative fixed fees (that is, slotting fees) facilitates collusion on downstream prices. Banning slotting fees or information exchange about wholesale prices decreases the scope for collusion. Moreover, high downstream prices are more difficult to sustain if upstream rather than downstream firms make contract offers.

Number of Pages in PDF File: 38

Keywords: collusion, vertical contracting, slotting fees, buyer power, information exchange

JEL Classification: D21, D43, L42

working papers series





Download This Paper

Date posted: April 2, 2012 ; Last revised: July 5, 2012

Suggested Citation

Piccolo, Salvatore and Miklós-Thal, Jeanine, Colluding through Suppliers (May 19, 2012). Simon School Working Paper No. FR 12-07. Available at SSRN: http://ssrn.com/abstract=2033242 or http://dx.doi.org/10.2139/ssrn.2033242

Contact Information

Salvatore Piccolo
Catholic University of the Sacred Heart of Milan ( email )
Largo Gemelli, 1
Via Necchi 9
Milan, MI 20123
Italy
Jeanine Miklós-Thal (Contact Author)
University of Rochester - Simon Business School ( email )
Rochester, NY 14627
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,044
Downloads: 170
Download Rank: 89,418
Citations:  3

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.297 seconds