Supplier encroachment and retailer effort

Matsushima, Noriaki; Mizuno, Tomomichi

Institute of Social and Economic Research Discussion Papers, 2018, 1027, 1-65

Number of Access:309（2025-07-24 04:28 Counts）

Identifier to cite or link to this item: https://hdl.handle.net/11094/68199

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Title
Supplier encroachment and retailer effort
Creator
NRID
1000080334879 1000080334879
ORCID
0000-0002-7865-3875 0000-0002-7865-3875
researchmap permalink
read0116301 read0116301
Scopus Author ID
7005645778 7005645778
CreatorName
Matsushima, Noriaki
NRID
1000060589315 1000060589315
CreatorName
Mizuno, Tomomichi
Subject
Encroachment
dual-channel model
investment
vertical relation
Abstract
We propose simple dual-channel models in which an upstream manufacturer trades with a downstream retailer that is able to engage in cost-reducing activities. When the manufacturer determines whether to encroach on the downstream market after observing the retailer's effort level, the threat of manufacturer encroachment can work as a disciplinary device to induce the retailer to aggressively engage in cost reductions, after which the manufacturer refrains from encroaching further on the downstream market. The disciplinary device is more likely to improve consumer welfare and social welfare, although the encroachment itself can harm social welfare.
Publisher
The Institute of Social and Economic Research, Osaka University
Source Title
Institute of Social and Economic Research Discussion Papers
Volume (Issue)
1027
Page
1-65
Date of Issued
2018-03-27
Language
English
Handle URL
https://hdl.handle.net/11094/68199
Relation.references
URI
https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2018/DP1027.pdf
Access Rights
metadata only access
Category
ディスカッション／ワーキング・ペーパー DP/WP
Institute of Social and Economic Research Discussion Papers