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Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106)



JOURNAL OF APPLIED BUSINESS AND ECONOMICS

Manufacturer-Retailer Pricing Competition Across Multiple Product Categories:
An Equilibrium Framework

Author(s): Benjamin Kartono

Citation: Benjamin Kartono, (2011) "Manufacturer-Retailer Pricing Competition Across Multiple Product Categories: An Equilibrium Framework," Journal of Applied Business and Economics, Vol. 12, Iss. 2, pp.27 - 39

Article Type: Research paper

Publisher: North American Business Press

Abstract:

This paper investigates pricing competition between manufacturers and a common retailer across
multiple product categories using an equilibrium framework. Rather than assuming a standard Nash
equilibrium outcome to the channel’s pricing game, the model allows for dependencies in pricing
behavior between channel members and is flexible enough to accommodate deviations from a Nash
equilibrium. Results suggest that accounting for pricing behavior across multiple product categories
affects competitive intensity and the distribution of channel profits, suggesting that manufacturer and
retailer pricing decisions across the two categories are dependent and involve cross-category
coordination. Implications of the results for managerial practice are discussed.