We study a manufacturer's encroachment choice when the retailer's decision to acquire and analyze demand information is costly. Notably, we explicitly take into account that the manufacturer might set such a high wholesale price that the retailer shuts down the indirect channel if demand turns...

We show that Miller and Pazgal.s (2001) model of strategic delegation, in which managerial incentives are based upon relative performance, is affected by a non-existence problem which has impact on the price equilibrium. The undercutting incentives generating this result are indeed similar to...

We identify a mistake in the specification of the demand system used in the strategic delegation model based on market shares by Jansen et al. (2007), whereby the price remains above marginal cost when goods are homogeneous. After amending this aspect, we perform a profit comparison with the...