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Exclusive versus Common Dealership
Author(s) -
Gabrielsen Tommy Staahl,
Sørgard Lars
Publication year - 1999
Publication title -
southern economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.762
H-Index - 58
eISSN - 2325-8012
pISSN - 0038-4038
DOI - 10.1002/j.2325-8012.1999.tb00251.x
Subject(s) - contrast (vision) , foreclosure , distribution (mathematics) , business , industrial organization , computer science , finance , mathematics , artificial intelligence , mathematical analysis
In a setting with two differentiated producers and identical retailers, we analyzed whether the producers will have a distribution system with one or several retailers. In contrast to the existing literature, we allow for full foreclosure under both types of distribution systems. We find, in contrast to what has been shown in the received literature, that the producers will prefer a distribution system with a single common retailer to a system with separate exclusive dealers.