Exclusive Territories and Manufacturers’ Collusion

Article, Preprint OPEN
Salvatore Piccolo; Markus Reisinger;
(2010)
  • Journal: Management Science, volume 57, issue 7 July, pages 1,250-1,266
  • Related identifiers: doi: 10.1287/mnsc.1110.1352
  • Subject: exclusive territories, supply chains, tacit collusion, information sharing, vertical restraints | Exclusive territories, supply chains, tacit collusion, information sharing, vertical restraints.

This paper highlights the rationale for exclusive territories in a model of repeated interaction between competing supply chains. We show that with observable contracts exclusive territories have two countervailing effects on manufacturers' incentives to sustain tacit c... View more
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    ∂Di(wi, wj ) wi + Di (wi, wj ) = 0, ∂wi 2(β + γ) 32β(β + γ)(β − γ)(2β2 − γ2) 1 − δ 4(β + γ) 1 − δ (2β − γ)2(β + γ)

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