Open AccessOptimizing Manufacturer Profit In Downstream Retail Markets Under Conditions of Uncertainty
Author(s) -
Evan Moore,
James Francisco
Publication year - 1970
Publication title -
journal of business strategies
Language(s) - English
Resource type - Journals
eISSN - 2162-6901
pISSN - 0887-2058
DOI - 10.54155/jbs.33.2.116-137
Subject(s) - incentive , business , industrial organization , profit (economics) , downstream (manufacturing) , microeconomics , automotive industry , marketing , economics , engineering , aerospace engineering
This paper presents the results of three differing sales incentives,from the manufacturer, in models involving a manufacturer selling a product toCournot-type retailers competing in the retail market. We investigate the effectivenessof these incentives under two scenarios: profit maximizing retailers and retailerswith an incentive function that is a mix between sales and profits. The optimal salesincentive is discussed.