search query: @author Mycielski, J. / total: 2
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| Author: | Mycielski, J. Riyanto, Y. E. Wuyts, F. |
| Title: | Inter- and intrabrand competition and the manufacturer- retailer relationship |
| Journal: | Journal of Institutional and Theoretical Economics
2000 : DEC, VOL. 156:4, p. 599-624 |
| Index terms: | COMPETITION RETAILING MANUFACTURING INDUSTRY MODELS EQUILIBRIUM ANALYSIS |
| Language: | eng |
| Abstract: | This paper analyses manufacturers' choice of vertical arrangement with retailer. The authors focus on two types of vertical arrangement; exclusive dealing and exclusive territory. Both are used by manufacturers as instruments to reduce competition between manufacturers. Exclusive dealing is used to avoid a head-to-head competition with other brands within a retail outlet. Thus, it restricts interbrand competition. Exclusive territory is used to eliminate interbrand competition. The authors' results show that the choice of vertical arrangement depends on the degree of product substitution. For example, when products are less substitutable, manufacturers prefer to sell brands to large number of competitive retailers. The authors derive welfare and antitrust policy implications. |
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