Understanding Price Competition between National Brands and Private Labels in a Duopoly Common Retailers Channel
This paper highlights a general analytical framework that helps understand the nature of price competition between national brands and private labels in the duopoly manufacturer and retailer channel structure. We consider both inter-manufacturer competition and inter-store competition. We also consider price leadership at the same level, in addition to asymmetric demand effects between the national brands and private labels. Results from our model are compared with those of previous studies, and various implications to channel strategy are derived.
Keywords: Price Competition, Distribution Channels, Store Brands, Game Theory
Sungchul Choi
Assistant Professor, School of Business, University of Northern British Columbia
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Ref: M07P0282