haku: @author Bonanno, G. / yhteensä: 4
viite: 3 / 4
| Tekijä: | Bonanno, G. Vickers, J. |
| Otsikko: | Vertical separation. |
| Lehti: | Journal of Industrial Economics
1988 : MAR, VOL. 36:3, p. 257-265 |
| Asiasana: | VERTICAL INTEGRATION FRANCHISING MANUFACTURING INDUSTRY |
| Kieli: | eng |
| Tiivistelmä: | A simple duopoly model is used to show the advantage to a manufacturer of selling his product through an independent retailer (vertical separation) rather than directly to consumers (vertical integration). It is shown that vertical separation, in conjunction with an appropriate contract between manufacturer and retailer, can be a profitable strategic move. The costs of vertical separation are examined (costs of information and coordination, franchise fees etc.). It is argued that vertical separation is in the collective, as well as individual, interest of manufacturers, permits the increase in wholesale price, whereas in-house retailing effectively constraints the whole price to equal production cost. |
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