Vertical Exclusion with Downstream Risk Aversion or Limited Liability
研究上游企业如何与两个风险厌恶或有限责任的下游企业签订合同，发现为应对风险溢价和额外盈余分享，上游企业常提供排他性合同。
An upstream firm with full commitment bilaterally contracts with two ex ante identical downstream firms. Each observes its own cost shock, and faces uncertainty from its competitor’s shock. When they are risk neutral and can absorb losses, the upstream firm contracts symmetric outputs for production efficiency. However, when they are risk averse, competition requires the payment of a risk premium due to revenue uncertainty. Moreover, when they enjoy limited liability, competition requires the upstream firm to share additional surplus. To resolve these trade‐offs, the upstream firm offers exclusive contracts in many cases.