Impact of discounting and competition on benefit of decentralization with strategic customers |
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| Authors: | Hangjun Yang |
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| Affiliation: | School of International Trade and Economics, University of International Business and Economics, 10 Huixindong St., Beijing, 100029, China Sauder School of Business, University of British Columbia, Canada |
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| Abstract: | With strategic customers, we find that a decentralized channel may have higher profit than that of a centralized channel. We show that in addition to the double marginalization effect, both customer and firm discounting and retailer competition are also driving factors of the higher decentralized channel profit. |
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| Keywords: | Discounting Retailer competition Strategic customer behavior Decentralization |
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