Arbeitspapier

Which is better for durable goods producers, exclusive or open supply chain?

We explore the supply chain problem of a downstream durable goods monopolist, who chooses one of the following trading modes: an exclusive supply chain with an incumbent supplier or an open supply chain, allowing the monopolist to trade with a new efficient entrant in the future. The predicted retail price reduction in the future dampens the profitability of the original firms. An efficient entrant's entry magnifies such a price reduction, causing a further reduction of original firms' joint profits. In equilibrium, the downstream monopolist chooses the exclusive supply chain to escape further price reductions, although it anticipates efficient entry.

Sprache
Englisch

Erschienen in
Series: ISER Discussion Paper ; No. 1115

Klassifikation
Wirtschaft
Monopoly; Monopolization Strategies
Monopolization; Horizontal Anticompetitive Practices
Vertical Restraints; Resale Price Maintenance; Quantity Discounts
Thema
Antitrust policy
Durable goods
Exclusive supply chain
Vertical relation

Ereignis
Geistige Schöpfung
(wer)
Kitamura, Hiroshi
Matsushima, Noriaki
Sato, Misato
Ereignis
Veröffentlichung
(wer)
Osaka University, Institute of Social and Economic Research (ISER)
(wo)
Osaka
(wann)
2021

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Kitamura, Hiroshi
  • Matsushima, Noriaki
  • Sato, Misato
  • Osaka University, Institute of Social and Economic Research (ISER)

Entstanden

  • 2021

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