Collusive effects of a monopolist's use of an intermediary to deliver to retailers

Isabel Teichmann and Vanessa von Schlippenbach

A manufacturer contracting secretly with several downstream competitors faces an opportunism problem, preventing it from exerting its market power. In an infinitely repeated game, the opportunism problem can be relaxed. We show that the upstream firm's market power can be restored even further if the upstream firm chooses a mixed distribution system in which it makes use of an intermediary to distribute the good to a subset of the retailers and delivers directly only to the remaining downstream firms.

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Year of publication:	2014
Authors:	Teichmann, Isabel ; Schlippenbach, Vanessa von
Publisher:	Berlin : DIW
Subject:	Vertical relations \| Delegation \| Downstream Monopolization \| Commitment problem \| Channel structure \| Multi-tier industry \| Monopol \| Monopoly \| Theorie \| Theory \| Vertikale Integration \| Vertical integration \| Vertriebsweg \| Distribution channel \| Einzelhandel \| Retail trade \| Wettbewerbsbeschränkung \| Restraints of competition \| Preismanagement \| Pricing strategy \| Lieferantenmanagement \| Supplier relationship management \| Wiederholte Spiele \| Repeated games

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Extent:	Online-Ressource (33 S.) graph. Darst.
Series:	Discussion papers / Deutsches Institut für Wirtschaftsforschung. - Berlin : [Verlag nicht ermittelbar], ISSN 1619-4535, ZDB-ID 2125067-4. - Vol. 1440
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Systemvoraussetzungen: Acrobat Reader
Other identifiers:	hdl:10419/106471 [Handle]
Classification:	L12 - Monopoly; Monopolization Strategies ; L14 - Transactional Relationships; Contracts and Reputation; Networks ; L42 - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
Source:	ECONIS - Online Catalogue of the ZBW

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