McGuire, Timothy W.; Staelin, Richard
March 1983
Marketing Science;Spring83, Vol. 2 Issue 2, p161
Academic Journal
Industry Overview
This paper investigates the effect of product substitutability on Nash equilibrium distribution structures in a duopoly where each manufacturer distributes its goods through a single exclusive retailer, which may be either a franchised outlet or a factory store. Static linear demand and cost functions are assumed, and a number of rules about players' expectations of competitors' behavior are examined. It is found that for most specifications product substitutability does influence the equilibrium distribution structure. For low degrees of substitutability, each manufacturer will distribute its product through a company store; for more highly competitive goods, manufacturers will be more likely to use a decentralized distribution system.


Related Articles

  • The Manufacturers' Choice of Distribution Policy under Successive Duopoly. Moner-Colonques, Rafael; Sempere-Monerris, Jos´┐Ż J.; Urbano, Amparo // Southern Economic Journal;Jan2004, Vol. 70 Issue 3, p532 

    Examines an asymmetric noncooperative game between two manufacturers selecting the number of retailers who can distribute their products. Differentiation and demand asymmetries between the two products; Equilibrium distribution systems in successive duopoly.

  • Efficient replenishment in the distribution channel Dong, Yan; Shankar, Venkatesh; Dresner, Martin // Journal of Retailing;Aug2007, Vol. 83 Issue 3, p253 

    Abstract: Efficient replenishment (ER), a business process that involves the reduction of order cost to facilitate deliveries of goods from the manufacturer to the retailer, is becoming increasingly important in distribution channel management. While a well-executed ER program is expected to...

  • Retailing Abstracts. Dickinson, Roger A.; Curhan, Ronald C.; Etgar, Michael; Jolson, Marvin A.; Rosenberg, Larry J. // Journal of Retailing;Summer77, Vol. 53 Issue 2, p93 

    This article presents abstracts of articles on the issues related to retail trade. The article "Distribution Management in an Uncertain Economy" is based on a study conducted at the Ohio State University of 85 of the top 1,000 manufacturing companies in the United States. The study found that a...

  • Developments in the Structure of Distribution in France: A Moderate Degree of Concentration . David, Michel // Journal of Retailing;Summer65, Vol. 41 Issue 2, p34 

    This article studies the developments in the structure of distribution in France. Though there has not been any spectacular movement toward concentration in distribution in France, it has been observed that it may be occurring. In support of this view is the fact that large-scale retailing is...

  • Deterministic Order-Up-To Level Policies in an Inventory Routing Problem. Bertazzi, Luca; Paletta, Giuseppe; Speranza, M. Grazia // Transportation Science;Feb2002, Vol. 36 Issue 1, p119 

    We consider a distribution problem in which a set of products has to be shipped from supplier to several retailers in a given time horizon. Shipments from the supplier to the retailers are performed by a vehicle of given capacity and cost. Each retailer determines a minimum and a maximum level...

  • Japan's Distribution System: Institutional Structure, Internal Political Economy, and Modernization. Goldman, Arieh // Journal of Retailing;Summer91, Vol. 67 Issue 2, p154 

    The author develops the argument that the Japanese distribution system does not fit on a traditional-modern continuum. The traditional nature of Japan's distribution system is more closely related to the internal political economy rather than to institutional structure. Although many modern...

  • The Retailer As MANUFACTURER. Peckenpaugh, Douglas J. // Private Label Buyer;Nov2014, Vol. 28 Issue 11, p20 

    The article reports that retailers are getting involved in private label manufacturing process in order to gain control in the market. It discusses factors by which retailers can modulate product manufacturing including pricing, size, package design, production and distribution. It focuses on...

  • European Competition Rules on Selective Distribution--A Shift Towards a More Economic Approach. Ridyard, Derek // European Retail Digest;Jun99, Issue 22, p47 

    Focuses on the competition rules of the European Commission on selective distribution systems. Reasons of brand owners for rejecting a retailer to distribute its product; Information on the anti-competitive effects of the selective distribution; Details on the Commission's proposed approach on...

  • When Are Nash Equilibria Independent of the Distribution of Agents' Characteristics. Bergstrom, Theodore C.; Varian, Hal R. // Review of Economic Studies;Oct85, Vol. 52 Issue 4, p715 

    We present some examples of Nash equilibria that are independent of the distribution of some parameter across the economic agents and describe a general theorem that characterizes this phenomenon.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics