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.
- Language
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Englisch
- Bibliographic citation
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Series: ISER Discussion Paper ; No. 1115
- Classification
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Wirtschaft
Monopoly; Monopolization Strategies
Monopolization; Horizontal Anticompetitive Practices
Vertical Restraints; Resale Price Maintenance; Quantity Discounts
- Subject
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Antitrust policy
Durable goods
Exclusive supply chain
Vertical relation
- Event
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Geistige Schöpfung
- (who)
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Kitamura, Hiroshi
Matsushima, Noriaki
Sato, Misato
- Event
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Veröffentlichung
- (who)
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Osaka University, Institute of Social and Economic Research (ISER)
- (where)
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Osaka
- (when)
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2021
- Handle
- Last update
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10.03.2025, 11:41 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Kitamura, Hiroshi
- Matsushima, Noriaki
- Sato, Misato
- Osaka University, Institute of Social and Economic Research (ISER)
Time of origin
- 2021