Cross sales in supply chains: An equilibrium analysis
International Journal of Production EconomicsPublished 23 March 2010
Chongqi Wu, Suman Mallik
Citations26
SJR quartileQ1
SJR score2.83
SNIP2.67
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Abstract
Consider a supply chain system with two manufacturers, each producing a single substitutable product. The products are sold through two retailers, each to be privately owned or owned by the manufacturer. A manufacturer is free to use a single retailer or both. We define cross sales to be the situation where at least one retailer sells both products and analyze the cross sales in channels with different degree of vertical integration. We show that cross sale will happen in quantity competition or in a capacity constrained price competition. However, cross sales may never happen in a pure Bertrand price competition.
Keywords
Economics, Econometrics and FinanceBusiness, Management and Accounting
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