publication . Article . 2009

Regional Monopoly and Interregional and Intraregional Competition: The Parallel Trade in Coca-Cola Between Shanghai and Hangzhou in China

Godfrey Yeung; Vincent Mok;
Open Access
  • Published: 16 Feb 2009 Journal: Economic Geography, volume 82, pages 89-109 (issn: 0013-0095, Copyright policy)
  • Publisher: Wiley
  • Country: United Kingdom
This article uses a "principal-agent-subagent" analytical framework and data that were collected from field surveys in China to (1) investigate the nature and causes of the parallel trade in Coca-Cola between Shanghai and Hangzhou and (2) assess the geographic and theoretical implications for the regional monopolies that have been artificially created by Coca-Cola in China. The parallel trade in Coca- Cola is sustained by its intraregional rivalry with Pepsi-Cola in Shanghai, where Coca- Cola (China) (the principal) seeks to maximize its share of the Shanghai soft-drinks market. This goal effectively supersedes the market-division strategy of Coca-Cola (China), ...
free text keywords: Geography, Planning and Development, Economics and Econometrics, G1, HD28, H1, HB, Incentive, Economic geography, Economics, Rivalry, Transaction cost, Monopoly, Disequilibrium, medicine.symptom, medicine, Coca, biology.organism_classification, biology, International trade, business.industry, business, China, Coca cola
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