Fauli-Oller, Ramon
Restriction of selling capacity by a retailer
Economics Bulletin. 2017, 37(2): 984-987
URI: http://hdl.handle.net/10045/65967
DOI: 
ISSN: 1545-2921
Abstract: 
We consider two symmetric upstream firms producing independent goods that sell to consumers through a common retailer. The distinguishing feature of the retailer is that she has a selling capacity, in the sense, that there is an upper limit in the total units of the two goods she can sell. We obtain that the retailer has incentives to reduce her selling capacity in order to increase the pay-off she obtains in the vertical structure.
Keywords:Buyer power, Selling capacity
Economics Bulletin
info:eu-repo/semantics/article