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    A Model of Vertical Restriction and Equilibrium in Retailing

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    Issue Date
    1983-10
    Author
    Bittlingmayer, George
    Publisher
    The University of Chicago Press
    Type
    Article
    Article Version
    Scholarly/refereed, publisher version
    Published Version
    http://www.jstor.org/stable/2352844
    Metadata
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    Abstract
    This model of distribution provides a rationale for restrictions placed on retailers by manufacturers. The manufacturer's customers are located uniformly along a road, and retailing operations are subject to increasing returns. Three difficulties arise. First, retailers acting in concert can earn positive profits at the expense of the manufacturer and consumers. Second, costless relocation, free entry, and competition will not result in the store density and retail price favored by the manufacturer. Third, store locations fixed in the short run imply that price cutting would undermine the density of stores preferred by the manufacturer.
    Description
    The Journal of Business © 1983 The University of Chicago Press
    URI
    http://hdl.handle.net/1808/10166
    Collections
    • Distinguished Professors Scholarly Works [918]
    • School of Business Scholarly Works [213]
    Citation
    Bittlingmayer, George (1983), "A Model of Vertical Restriction and Equilibrium in Retailing," he Journal of Business, 56 (4), 477-496

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    KU Libraries
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    785-864-8983

    KU Libraries
    1425 Jayhawk Blvd
    Lawrence, KS 66045
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    Contact KU ScholarWorks
    785-864-8983
    KU Libraries
    1425 Jayhawk Blvd
    Lawrence, KS 66045
    785-864-8983

    KU Libraries
    1425 Jayhawk Blvd
    Lawrence, KS 66045
    Image Credits
     

     

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