Which is Better for Durable Goods Producers, Exclusive or Open Supply Chain?

Kitamura, Hiroshi; Matsushima, Noriaki; Sato, Misato

Which is Better for Durable Goods Producers, Exclusive or Open Supply Chain?

Kitamura, Hiroshi; Matsushima, Noriaki; Sato, Misato

Institute of Social and Economic Research Discussion Papers, 2021, 1115, 1-24

Number of Access:355（2025-07-24 04:40 Counts）

Identifier to cite or link to this item: https://hdl.handle.net/11094/78361

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Title	Which is Better for Durable Goods Producers, Exclusive or Open Supply Chain?
Creator	NRID 1000030582415 1000030582415 CreatorName Kitamura, Hiroshi
	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 1000070794585 1000070794585 CreatorName Sato, Misato
Subject	Antitrust policy
	Durable goods
	Exclusive supply chain
	Vertical relation
Abstract	We explore the supply chain problem of a downstream durable goods monopolist, who chooses one of the following trading modes: an exclusive supply chain with an incumbent supplier or an open supply chain, allowing the monopolist to trade with a new efficient entrant in the future. The predicted retail price reduction in the future dampens the profitability of the original firms. An efficient entrant’s entry magnifies such a price reduction, causing a further reduction of original firms’ joint profits. In equilibrium, the downstream monopolist chooses the exclusive supply chain to escape further price reductions, although it anticipates efficient entry.
Publisher	The Institute of Social and Economic Research, Osaka University
Source Title	Institute of Social and Economic Research Discussion Papers
Volume (Issue)	1115
Page	1-24
Date of Issued	2021-01
Language	English
Handle URL	https://hdl.handle.net/11094/78361
PISSN	0473453X
eISSN	24350982
Relation.references	URI https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2021/DP1115.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
Category	Institute of Social and Economic Research Discussion Papers

Resource Type	technical report
Local Type	DP/WP
DCMI Type	Text
DCTERMS.bibliographicCitation	Institute of Social and Economic Research Discussion Papers. 2021, 1115, p. 1-24
DC.title	Which is Better for Durable Goods Producers, Exclusive or Open Supply Chain?
DC.creator	Kitamura, Hiroshi
	Matsushima, Noriaki
	Sato, Misato
DC.publisher	The Institute of Social and Economic Research, Osaka University
DC.language' scheme='DCTERMS.RFC1766	English
DC.type' scheme='DCTERMS.DCMIType	Text
DCTERMS.issued' scheme='DCTERMS.W3CDTF	2021-01
DC.relation' scheme='DCTERMS.URI	https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2021/DP1115.pdf
DC.subject	Antitrust policy
	Durable goods
	Exclusive supply chain
	Vertical relation
DCTERMS.abstract	We explore the supply chain problem of a downstream durable goods monopolist, who chooses one of the following trading modes: an exclusive supply chain with an incumbent supplier or an open supply chain, allowing the monopolist to trade with a new efficient entrant in the future. The predicted retail price reduction in the future dampens the profitability of the original firms. An efficient entrant’s entry magnifies such a price reduction, causing a further reduction of original firms’ joint profits. In equilibrium, the downstream monopolist chooses the exclusive supply chain to escape further price reductions, although it anticipates efficient entry.
DC.format	78361
citation_title	Which is Better for Durable Goods Producers, Exclusive or Open Supply Chain?
citation_author	Kitamura, Hiroshi
	Matsushima, Noriaki
	Sato, Misato
citation_publisher	The Institute of Social and Economic Research, Osaka University
citation_language	English
citation_date	2021-01
citation_journal_title	Institute of Social and Economic Research Discussion Papers
citation_volume	1115
citation_firstpage	1
citation_lastpage	24
citation_public_url	https://hdl.handle.net/11094/78361
citation_abstract_html_url	https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2021/DP1115.pdf

Which is Better for Durable Goods Producers, Exclusive or Open Supply Chain?

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