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Price Leadership and Vertical Relationships (The Canadian Journal of Economics / Revue canadienne d'Economique, Vol. 30, No. 1, February 1997)
Bibliografi
Author:
Cyrenne, Philippe
Bahasa:
(EN )
Tahun Terbit:
1997
Jenis:
Article - diterbitkan di jurnal ilmiah internasional
Fulltext:
independent study 5.pdf
(304.01KB;
6 download
)
Abstract
In this paper price leadel ship in vertically related markets is examined. In contrast
to the analysis with only a retail stage, I show that the strategic advantage normally associated
with retail price followership may not arise. The reason is that in vertically related markets,
price leadership at the retail stage alters the outcome at the manufacturing stage in a way
that offsets the strategic advantage usually held by the retail price follower. Specifically, the
retail follower earns greater profits than the leader only when products are poor substitutes;
for closer substitutes, the price follower earns fewer profits.
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