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Abstract

Vol. 67, No. 2, pp. 164-174 (2016)

“Price vs. Quantity: Strategic Variable Choice with Distribution Channel Competition”
Tatsuhiko Nariu (Graduate School of Business Administration, Kyoto University), Haiyan Wang (Osaka University of Economics)

Suppose that there are two distribution channels supplying differentiated substitute goods, each with one manufacturer and one retailer. Under the same demand situation, if manufacturers and retailers may choose the type of strategic variable, either price or quantity, then all choosing quantity will be the equilibrium, whether franchise fees can be collected or not.