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Author:Besanko, D.
Perry, M.
Title:Exclusive dealing in a spatial model of retail competition
Journal:International Journal of Industrial Organization
1994 : SEP, VOL. 12:3, p. 297-329
Index terms:BRANDS
RETAILING
COMPETITION
Language:eng
Abstract:This paper analyses exclusive dealing in a model with brand differentiation by manufacturers and spatial differentiation by retailers. Exclusive dealing is shown to generate higher profits for manufacturers, who thus have an incentive to insist on exclusive dealing. Exclusive dealing also results in higher prices and higher transportation costs for consumers. However, exclusive dealing may still increase total surplus because it reduces the fixed cost of retailing.
SCIMA record nr: 116529
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