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Vertical Coordination Can Facilitate Stronger Customer-Seller Ties but at the Same

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Essay

Vertical coordination can facilitate stronger customer-seller ties but at the same time may increase the risk to the customer's and supplier's specific investments. What are specific investments and why are they risky?


Definitions:

Tabula Rasa

A hypothesis positing that people are born with minds like blank slates, and all understanding is derived from experiences or sensory input.

Control Group

A group made up of subjects in an experiment who do not receive the treatment, but for whom all other conditions are comparable to those of subjects in the experimental group.

Decreases Behavior

This term likely refers to any behavior modification technique or occurrence that leads to a reduction in the frequency, intensity, or duration of a certain behavior.

Accommodation

In the context of psychology, it refers to the cognitive process of revising existing cognitive schemas, perceptions, and understanding so that new information can be incorporated.

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