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| Author: | Ingene, C. Parry, M. |
| Title: | Manufacturer-optimal wholesale pricing when retailers compete |
| Journal: | Marketing Letters
1998 : FEB, VOL. 9:1, p. 65-78 |
| Index terms: | MARKETING PRICES RESEARCH |
| Language: | eng |
| Abstract: | The existing marketing science literature on channels of distribution has emphasized pricing strategies that maximize either channel or manufacturer margin. This emphasis has implicitly assumed that optimal wholesale prices are independent of any fixed fees charged by the manufacturer. While this assumption is justified in a single-manufacturer, single-retailer world, it generally does not lead to manufacturer profit maximization in a world of competing retailers. In this paper, the authors derive a manufacturer-optimal wholesale pricing strategy by simultaneously determining both elements of a two-part tariff. |
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