Unlike horizontal networks where participants are
horizontally interdependent and where decisions are
made jointly among partners, vertical networks often
require upstream and downstream partners to work
together in a sequential pattern. A case in point is the
relationship between government ministries and industry
associations and cooperatives in Korea in the pursuit
of industrial policies. In these mostly cooperative
games, upstream players first make decisions that affect
downstream agents in the form decisions regarding
resource allocation or property rights who in turn perform
tasks often delegated to them by upstream players.
Through repetitive interactions (transactions), they learn
to cooperate and maintain good working relationship