Review paper
An Industry Equilibrium Analysis of Downstream Vertical Integration
Abstract
This paper investigates the effect of product substitutability on Nash equilibrium distribution structures in a duopoly where each manufacturer distributes its goods through a single exclusive retailer, which may be either a franchised outlet or a factory store. Static linear demand and cost functions are assumed, and a number of rules about players' expectations of competitors' behavior are examined. It is found that for most specifications...
Paper Details
Title
An Industry Equilibrium Analysis of Downstream Vertical Integration
Published Date
Jan 1, 2008
Journal
Volume
27
Issue
1
Pages
115 - 130
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