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Precommitment in Competing Vertical Chains

Andreas Irmen

Cahiers de Recherches Economiques du Département d'économie from Université de Lausanne, Faculté des HEC, Département d’économie

Abstract: The design of distribution channels is an important marketing decision since a revision implies costly reorganization. Hence, it makes sense to study strategic motives of alternative distribution devices. A precommitment is a strategic move that affects the other players'expectations on how oneself will behave and thus induces them to choose in one's own favor (Schelling (1960)). How these tactics can be used by firms to favorably influence competition between vertical chains is the topic of the literature reviewed in this survey.

Keywords: vertical restraints; vertical separation; contract theory (search for similar items in EconPapers)
JEL-codes: L22 L42 L81 (search for similar items in EconPapers)
Pages: 44 pages
Date: 1996-07
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Published in Journal of Economic Surveys, vol. 12 (4), September 1998, pp. 333-359

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