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Firms commonly manufacture multiple products using multiple complementary inputs. The multi-input-multi-product environment generates interactions among products yielding the following results for the firm's sourcing strategies: (i) A multi-input-multi-product firm might optimally deviate from...
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According to the classical result on complementary monopolies, a single-product firm unambiguously prefers purchasing complementary inputs from an integrated monopolistic supplier rather than from different non-integrated monopolistic suppliers. In this note, we account for the fact that firms...
Persistent link: https://www.econbiz.de/10012955549
Distribution channels in which a common retailer undertakes long-term investments and coordinates the sale of competing products are prevalent in many industries. We study how the allocation of bargaining power among the retailer and the suppliers affects investment incentives, market shares,...
Persistent link: https://www.econbiz.de/10013228382