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@article{Hansen:2019:10.1111/joie.12212,
author = {Hansen, S and Motta, M},
doi = {10.1111/joie.12212},
journal = {The Journal of Industrial Economics},
pages = {409--447},
title = {Vertical exclusion with downstream risk aversion or limited liability},
url = {http://dx.doi.org/10.1111/joie.12212},
volume = {67},
year = {2019}
}

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TY  - JOUR
AB  - An upstream firm with full commitment bilaterally contracts with two exante identical downstream firms. Each observes its own cost shock, and facesuncertainty from its competitor’s shock. When they are risk neutral and canabsorb losses, the upstream firm contracts symmetric outputs for productionefficiency.   However,  when  they  are  risk  averse,  competition  requires  thepayment  of  a  risk  premium  due  to  revenue  uncertainty.   Moreover,  whenthey enjoy limited liability, competition requires the upstream firm to shareadditional  surplus.   To  resolve  these  trade-offs,  the  upstream  firm  offersexclusive contracts in many cases.
AU  - Hansen,S
AU  - Motta,M
DO  - 10.1111/joie.12212
EP  - 447
PY  - 2019///
SN  - 0022-1821
SP  - 409
TI  - Vertical exclusion with downstream risk aversion or limited liability
T2  - The Journal of Industrial Economics
UR  - http://dx.doi.org/10.1111/joie.12212
UR  - https://onlinelibrary.wiley.com/doi/full/10.1111/joie.12212
UR  - http://hdl.handle.net/10044/1/75966
VL  - 67
ER  -

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