Trade Policy and Access to Retail Distribution

Martin Richardson

Chapter 12 in Dimensions of Trade Policy, 2017, pp 243-262 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The paper develops a model in which foreign and domestic manufacturers producing differentiated goods sell through spatially differentiated retailers. There is free entry into retailing but access to the retail distribution network (by manufacturers) may be controlled. The author considers a domestic vertical control mechanism in which domestic retailers carry only domestic brands (termed “domestic dealing”) and compares the use of tariffs on imports and the enforcement of domestic dealing restrictions as means of increasing domestic welfare. It is shown that domestic dealing will always be prohibited when tariffs can be used. When trade policy is not available, however, domestic dealing may be desirable.

Keywords: Trade Policy; Preferential Trading Agreements; Content Protection; Parallel Imports (search for similar items in EconPapers)
JEL-codes: F13 (search for similar items in EconPapers)
Date: 2017
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Related works:
Journal Article: Trade Policy and Access to Retail Distribution (2004)
Working Paper: Trade Policy and Access to Retail Distribution
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