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Author:Spiegel, Y.
Yehezkel, Y.
Title:Price and non-price restraints when retailers are vertically differentiated
Journal:International Journal of Industrial Organization
2003 : SEP, VOL. 21:7, p. 923-947
Index terms:Retailing
Consumer behaviour
Competition
Freeterms:Vertical restraints
Customer restrictions
Language:eng
Abstract:The authors consider an intrabrand competition model with a single manufacturer (M) and two vertically differentiated retailers. They show that when markets cannot be vertically segmented and the cost difference between the retailers is not too large, M will foreclose the low quality retailer. When markets can be vertically segmented, M will impose customer restrictions and assign consumers with low willingness to pay to the low (high) quality retailer.
SCIMA record nr: 252870
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