A transaction cost approach is used to investigate a manufacturer's policy towards exclusive territory dealers who bootleg (sell across their assigned territories). We show that optimal enforcement policies will generally tolerate some level of bootlegging. This tolerance is a natural...

Inter-connect standards increase choices; e.g., in cardiac pacemakers, the IS-1 standard enables the “pulse generator” from six manufacturers to be combined with the “lead set” from the other five to add up to thirty additional mixed-brand pacemakers. However, observed assortment...

quot;Pluralquot; distribution systems are often found in industrial markets. Although transaction cost analysis has been successfully applied to understanding decisions about distribution systems, these plural forms have been virtually ignored in extant empirical work. Critics suggest that...