Distribution Services and Economic Power in a Channel
Roger R. Betancourt and David A. Gautschi ,
( 74 )
Journal of Retailing

We explore the consequences of formally acknowledging the influences of distribution services on the economic power of a retailer relative to a manufacturer in a simple channel dyad. The work is in the tradition of the analysis of successive monopolies and features the analysis of the well-known double marginalization problem. We compare two stylized cases of the provision of distribution services, the first exclusively by the downstream agent and the second by the upstream agent.

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