Chapter

Vertical Relationships

John Kay

in Foundations of Corporate Success

Published in print April 1995 | ISBN: 9780198289883
Published online November 2003 | e-ISBN: 9780191718205 | DOI: http://dx.doi.org/10.1093/019828988X.003.0017
 Vertical Relationships

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This chapter discusses vertical relationships and the allocation of added value among stakeholders. This allocation will depend on the design of the contract, which will also influence the risk allocation and the incentive structure of the relationship. The nature of the relationships that will emerge will in turn influence the market structure.

Keywords: added value; contracts; incentive structure; market structure; risk allocation; stakeholders; vertical relationships

Chapter.  6938 words. 

Subjects: Microeconomics

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