Arbeitspapier

Supply chain innovations and partial ownership

We show that competing downstream firms may rather invest in their inefficient inhouse production than help improve the technology of the efficient supplier, even if this is costless. Even worse, a downstream firm can have strong incentives to decrease the efficiency of the supplier in order to improve its outside options. We demonstrate that non-controlling partial backward ownership can align the incentives of the supplier and its customers with respect to supply chain innovations.

ISBN
978-3-86304-280-6
Language
Englisch

Bibliographic citation
Series: DICE Discussion Paper ; No. 281

Classification
Wirtschaft
Firm Organization and Market Structure
Antitrust Issues and Policies: General
Subject
knowledge spillover
innovation
minority shareholdings
supply chain efficiency
vertical partial ownership

Event
Geistige Schöpfung
(who)
Hunold, Matthias
Shekhar, Shiva
Event
Veröffentlichung
(who)
Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)
(where)
Düsseldorf
(when)
2018

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Hunold, Matthias
  • Shekhar, Shiva
  • Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)

Time of origin

  • 2018

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