IDEAS home Printed from https://ideas.repec.org/a/cje/issued/v30y1997i1p235-45.html
   My bibliography  Save this article

Price Leadership and Vertical Relationships

Author

Listed:
  • Philippe Cyrenne

Abstract

In this paper, price leadership in vertically related markets is examined. In contrast to the analysis with only a retail stage, the author shows that the strategic advantage normally associated with retail price followership may not arise. The reason is that in vertically related markets, price leadership at the retail stage alters the outcome at the manufacturing stage in a way that, offsets the strategic advantage usually held by the retail price follower. Specifically, the retail follower earns greater profits than the leader only when products are poor substitutes; for closer substitutes, the price follower earns fewer profits.

Suggested Citation

  • Philippe Cyrenne, 1997. "Price Leadership and Vertical Relationships," Canadian Journal of Economics, Canadian Economics Association, vol. 30(1), pages 235-245, February.
    • Handle: RePEc:cje:issued:v:30:y:1997:i:1:p:235-45
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0008-4085%28199702%2930%3A1%3C235%3APLAVR%3E2.0.CO%3B2-7
    Download Restriction: only available to JSTOR subscribers
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abhik Roy, 2022. "A dynamic model of price competition and promotion in prescription drug markets," Marketing Letters, Springer, vol. 33(4), pages 577-591, December.
    2. Abhik Roy & Jagmohan Raju, 2011. "The influence of demand factors on dynamic competitive pricing strategy: An empirical study," Marketing Letters, Springer, vol. 22(3), pages 259-281, September.

    More about this item

    Statistics

    Access and download statistics

    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:cje:issued:v:30:y:1997:i:1:p:235-45. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Prof. Werner Antweiler (email available below). General contact details of provider: https://edirc.repec.org/data/ceaaaea.html .

    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.