In this thesis, I investigate how the vertical practices between firms affect or are affected by competition at different layers of an industry. In Chapter 1, I study how information sharing between rivals affects exclusion in a dynamic model. I present a novel mechanism for information sharing, showing that the vertical contracting practices between the incumbent firm and the retailers can induce strategic sharing by different types of entrants. In Chapter 2, I consider the optimal implementation of resale price maintenance (RPM) in a market where price violation may occur. I show that the manufacturer and the retailers fail to coordinate on the Pareto-dominant equilibrium due to noisy information, which gives rise to violations of RPM. In Chapter 3, I develop a theory on how f...[ Read more ]

In this thesis, I investigate how the vertical practices between firms affect or are affected by competition at different layers of an industry. In Chapter 1, I study how information sharing between rivals affects exclusion in a dynamic model. I present a novel mechanism for information sharing, showing that the vertical contracting practices between the incumbent firm and the retailers can induce strategic sharing by different types of entrants. In Chapter 2, I consider the optimal implementation of resale price maintenance (RPM) in a market where price violation may occur. I show that the manufacturer and the retailers fail to coordinate on the Pareto-dominant equilibrium due to noisy information, which gives rise to violations of RPM. In Chapter 3, I develop a theory on how firm structure responds to market competitiveness. I find that a reallocation of control rights can be an effective way of adapting to changing market competitiveness.