IDEAS home Printed from https://ideas.repec.org/a/cai/ecoldc/ecop_178_0001.html
   My bibliography  Save this article

La concurrence entre distributeurs favorise-t-elle la variété des produits ?

Author

Listed:
  • Marie-Laure Allain
  • Patrick Waelbroeck

Abstract

We examine the impact of horizontal and vertical market structure on product variety. We consider a market for horizontally differentiated products where the cost of a new-product launch is fixed and spread between the manufacturing and retail industries. We show that a vertically integrated firm offers a wider variety of products than a chain of monopolies. If the launch cost is shared equally across the vertical entity or supported mainly by manufacturers, inter-vendor competition partially restores the incentives to innovate. By contrast, when most of the cost is borne by the retail sector, competition between merchants may foster even more innovation than vertical integration. In both cases, retail concentration reduces product variety.

Suggested Citation

  • Marie-Laure Allain & Patrick Waelbroeck, 2007. "La concurrence entre distributeurs favorise-t-elle la variété des produits ?," Economie & Prévision, La Documentation Française, vol. 0(2), pages 1-14.
    • Handle: RePEc:cai:ecoldc:ecop_178_0001
    as

    Download full text from publisher

    File URL: http://www.cairn.info/load_pdf.php?ID_ARTICLE=ECOP_178_0001
    Download Restriction: free
    File URL: http://www.cairn.info/revue-economie-et-prevision-1-2007-2-page-1.htm
    Download Restriction: free
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Motta,Massimo, 2004. "Competition Policy," Cambridge Books, Cambridge University Press, number 9780521016919, September.
    2. Marie-Laure Allain & Patrick Waelbroeck, 2006. "Retail structure and product variety," Working Papers hal-00243032, HAL.
    3. Rey, Patrick & Tirole, Jean, 1986. "The Logic of Vertical Restraints," American Economic Review, American Economic Association, vol. 76(5), pages 921-939, December.
    4. Brocas, Isabelle, 2003. "Vertical integration and incentives to innovate," International Journal of Industrial Organization, Elsevier, vol. 21(4), pages 457-488, April.
    5. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, April.
    6. Patrick Rey, 1997. "Impact des accords verticaux entre producteurs et distributeurs," Revue Française d'Économie, Programme National Persée, vol. 12(2), pages 3-55.
    7. Joseph J. Spengler, 1950. "Vertical Integration and Antitrust Policy," Journal of Political Economy, University of Chicago Press, vol. 58(4), pages 347-347.
    8. Christoph R. Weiss & Antje Wittkopp, 2005. "Retailer concentration and product innovation in food manufacturing," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(2), pages 219-244, June.
    9. Martin A. Lariviere & V. Padmanabhan, 1997. "Slotting Allowances and New Product Introductions," Marketing Science, INFORMS, vol. 16(2), pages 112-128.
    10. Boone, Jan, 2001. "Intensity of competition and the incentive to innovate," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 705-726, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marie-Laure Allain & Patrick Waelbroeck, 2006. "Retail structure and product variety," Working Papers hal-00243032, HAL.
    2. Marie-Laure Allain & Patrick Waelbroeck, 2006. "Product Variety and Retail Structure," Working Papers 2006-21, Center for Research in Economics and Statistics.
    3. Oana Secrieru, 2006. "The Economic Theory Of Vertical Restraints," Journal of Economic Surveys, Wiley Blackwell, vol. 20(5), pages 797-822, December.
    4. Jakub Kastl & David Martimort & Salvatore Piccolo, 2009. ""When Should Manufacturers Want Fair Trade?": New Insights from Asymmetric Information," CSEF Working Papers 218, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 08 Apr 2010.
    5. Xulia González, 2015. "Empirical Regularities in the Vertical Restraints of Manuacturing Firms," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 43(2), pages 181-194, June.
    6. G. Rossini, 2004. "Vertical integration in a stochastic framework and a nonsymmetric bargaining equilibrium," Working Papers 527, Dipartimento Scienze Economiche, Universita' di Bologna.
    7. Stefan Buehler & Dennis L. Gärtner, 2013. "Making Sense of Nonbinding Retail-Price Recommendations," American Economic Review, American Economic Association, vol. 103(1), pages 335-359, February.
    8. Tarsalewska, Monika, 2015. "The timing of mergers along the production chain, capital structure, and risk dynamics," Journal of Banking & Finance, Elsevier, vol. 57(C), pages 51-64.
    9. Staahl Gabrielsen, Tommy & Johansen, Bjørn Olav & Shaffer, Greg, 2018. "When is Double Marginalization a Problem?," Working Papers in Economics 7/18, University of Bergen, Department of Economics.
    10. Wolfgang Kerber & Simonetta Vezzoso, 2004. "EU Competition Policy, Vertical Restraints, and Innovation: An Analysis from an Evolutionary Perspective," Marburg Working Papers on Economics 200414, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    11. Giorgio Zanarone, 2009. "Vertical Restraints and the Law: Evidence from Automobile Franchising," Journal of Law and Economics, University of Chicago Press, vol. 52(4), pages 691-700, November.
    12. Laurent Linnemer, 2022. "Doubling Back on Double Marginalization," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 61(1), pages 1-19, August.
    13. Sreya Kolay & Greg Shaffer, 2022. "Slotting Fees and Price Discrimination in Retail Channels," Marketing Science, INFORMS, vol. 41(6), pages 1145-1162, November.
    14. Michiel Bijlsma & Viktoria Kocsis & Victoria Shestalova & Gijsbert Zwart, 2008. "Vertical foreclosure: a policy framework," CPB Document 157, CPB Netherlands Bureau for Economic Policy Analysis.
    15. G. Rossini, 2005. "Pitfalls in private and social incentives of vertical crossborder outsourcing," Working Papers 536, Dipartimento Scienze Economiche, Universita' di Bologna.
    16. Antonio Acconcia & Riccardo Martina & Salvatore Piccolo, 2008. "Vertical Restraints Under Asymmetric Information: On The Role Of Participation Constraints," Journal of Industrial Economics, Wiley Blackwell, vol. 56(2), pages 379-401, June.
    17. Barick Chung & Eric Rasmusen, 2008. "Price Discrimination between Retailers with and without Market Power," Working Papers 2008-14, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    18. Sheldon, Ian M., 2017. "The Competitiveness Of Agricultural Product And Input Markets: A Review And Synthesis Of Recent Research," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 49(1), pages 1-44, February.
    19. Rossini, Gianpaolo, 2005. "Outsourcing with labor management," Economic Systems, Elsevier, vol. 29(4), pages 455-466, December.
    20. Committee, Nobel Prize, 2014. "Market power and regulation (scientific background)," Nobel Prize in Economics documents 2014-2, Nobel Prize Committee.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cai:ecoldc:ecop_178_0001. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jean-Baptiste de Vathaire (email available below). General contact details of provider: https://www.cairn.info/revue-economie-et-prevision.htm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.