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| Ramon Fauli-Oller |
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| ''Restriction of selling capacity by a retailer'' |
| ( 2017, Vol. 37 No.2 ) |
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| 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. |
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| Keywords: buyer power, selling capacity |
JEL: L2 - Firm Objectives, Organization, and Behavior: General
L1 - Market Structure, Firm Strategy, and Market Performance: General |
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| Manuscript Received : Jan 31 2017 | | Manuscript Accepted : May 05 2017 |
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