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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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