Usefulness of resale price maintenance under different levels of sales-effort cost and system-parameter uncertainties |
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| Authors: | Amy Hing Ling Lau Hon-Shiang Lau Jian-Cai Wang |
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| Institution: | 1. School of Business, University of Hong Kong, Pokfulam, Hong Kong;2. Department of Management Sciences, City University of Hong Kong, Kowloon Tong, Hong Kong |
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| Abstract: | This paper on “resale price maintenance” (RPM) has three main parts:- (i)
- Using a simple and parsimonious model, we show that even with only one retailer, a “supplier” or “manufacturer” (hereafter “Manu”) should impose minimum-RPM under some circumstances but maximum-RPM in others. These two sets of circumstances are defined by a very simple formula.
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| Keywords: | Resale price maintenance Supply-chain pricing Contract design |
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