Downstream R&D, raising rival's costs, and input-price contracts: a comment on the role of spillovers

Vasileios Zikos and Dusanee Kesavayuth

Economics Bulletin, 2010, vol. 30, issue 4, 3018-3025

Abstract: 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 (search for similar items in EconPapers)
JEL-codes: L0 L1 (search for similar items in EconPapers)
Date: 2010-11-13
References: View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I4-P277.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-10-00503

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().