Exclusive dealing in a spatial model of retail competition Export

@article{besanko-berry-94, abstract = {This paper analyzes exclusive dealing in a model with brand differentiation by manufacturers and spatial differentiation by retailers. Exclusive dealing is shown to generate higher profits for manufacturers, who thus have an incentive to insist on exclusive dealing. Exclusive dealing also results in higher prices and higher transportation costs for consumers. However, exclusive dealing may still increase total surplus because it reduces the fixed costs of retailing. If so, the comparison with non-exclusive dealing becomes difficult because these lower fixed costs induce entry of additional retailers, reducing the retail margin and consumer's transportation costs. Numerical analysis suggests that total surplus is likely to increase with exclusive dealing when there are substantial reductions in the fixed costs of retailing.}, author = {Besanko, David and Perry, Martin K.}, citeulike-article-id = {2861399}, citeulike-linkout-0 = {http://dx.doi.org/10.1016/0167-7187(94)90036-1}, citeulike-linkout-1 = {http://www.sciencedirect.com/science/article/B6V8P-45F8Y77-1D/1/082072812234b3f5e8949156e8c00924}, doi = {10.1016/0167-7187(94)90036-1}, journal = {International Journal of Industrial Organization}, keywords = {450-3}, month = {September}, number = {3}, pages = {297--329}, posted-at = {2008-06-04 16:03:43}, priority = {2}, title = {Exclusive dealing in a spatial model of retail competition}, url = {http://dx.doi.org/10.1016/0167-7187(94)90036-1}, volume = {12}, year = {1994} }

TY - JOUR ID - besanko-berry-94 L3 - citeulike-article-id:2861399 N2 - This paper analyzes exclusive dealing in a model with brand differentiation by manufacturers and spatial differentiation by retailers. Exclusive dealing is shown to generate higher profits for manufacturers, who thus have an incentive to insist on exclusive dealing. Exclusive dealing also results in higher prices and higher transportation costs for consumers. However, exclusive dealing may still increase total surplus because it reduces the fixed costs of retailing. If so, the comparison with non-exclusive dealing becomes difficult because these lower fixed costs induce entry of additional retailers, reducing the retail margin and consumer's transportation costs. Numerical analysis suggests that total surplus is likely to increase with exclusive dealing when there are substantial reductions in the fixed costs of retailing. IS - 3 JF - International Journal of Industrial Organization EP - 329 TI - Exclusive dealing in a spatial model of retail competition VL - 12 SP - 297 KW - 450-3 AU - Besanko, David AU - Perry, Martin PY - 1994/09// UR - http://dx.doi.org/10.1016/0167-7187(94)90036-1 ER -