Manufacturer-Optimal Wholesale Pricing When Retailers Compete

摘要: The existing marketing science literature on channels of distribution has emphasized pricing strategies that maximize either channel or manufacturer margin. This emphasis implicitly assumed optimal wholesale prices are independent any fixed fees charged by the manufacturer. While this assumption is justified in a single-manufacturer, single-retailer world, it generally does not lead to profit maximization world competing retailers. In paper we derive manufacturer-optimal strategy simultaneously determining both elements two-part tariff (consisting price and fee). We show will always prefer “sophisticated” one maximizes also functions absolute difference between retailer costs.