We analyze the incentives of a vertically-integrated producer (VIP) to engage in “self-sabotage”. Self-sabotage occurs when a VIP intentionally increases its upstream costs and/or reduces the quality of its upstream product. We identify conditions under which self-sabotage is profitable for the VIP even though it raises symmetrically the cost of the upstream product to all downstream producers ...

Recent industry developments motivate the study of cross-market firm integrations, which often raises controversies and regulatory concerns due to the potential negative effects through the integrated firms’ sabotage activities. In this paper, we analyze integrations of firms in two interrelated markets that produce complementary products. Two firms compete with differentiated products in each ...

Purpose The innovation of business model (BM) is a strategic process for many firms, from which depends competitiveness and sustainability. Despite its theoretical relevance in management sciences, research on infancy lacks consistency connections to the theme “performance”. With aim contribute bridging this gap, paper aims identify analyse drivers performance. Design/methodology/approach This ...

“There is the employer’s sabotage as well as the worker’s sabotage. Employers interfere with the quality of production, they interfere with the quantity of production, they interfere with the supply as well as with the kind of goods for the purpose of increasing their profit. But this form of sabotage, capitalist sabotage, is antisocial, for the reason that it is aimed at the benefit of the few...

Many tournaments are plagued by sabotage among competitors. Typically, sabotage is welfare-reducing, but from an individual’s perspective an attractive alternative to exerting positive effort. Yet, given its illegal and often immoral nature, sabotage is typically hidden, making it difficult to assess its extent and its victims. Therefore, we use data from Judo World Championships, where a rule ...

In a three player dynamic public goods experiment, social output today determines production possibilities tomorrow. In each period, players choose to sabotage, to co-operate, or to play best response. Sabotage harms social output and growth. Mutual co-operation maximises both. The property rights to social output are distributed unequally. Extent and skew of inequality are varied. Empirical st...