Price vs. Quantity: Strategic Variable Choice with Distribution Channel Competition
Tatsuhiko Nariu and
Haiyan Wang
Economic Review, 2016, vol. 67, issue 2, 164-174
Abstract:
Suppose that there are two distribution channels supplying differentiated substitute goods, each with one manufacturer and one retailer. Under the same demand situation, if manufacturers and retailers may choose the type of strategic variable, either price or quantity, then all choosing quantity will be the equilibrium, whether franchise fees can be collected or not.
JEL-codes: D43 L13 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:hit:ecorev:v:67:y:2016:i:2:p:164-174
DOI: 10.15057/27906
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