Edited by Charles A. Ingene, James R. Brown and Rajiv P. Dant
Chapter 9: Information management and contract design under supplier encroachment
In this chapter the authors examine the implications of asymmetric information in settings in which a supplier encroaches upon the market of a reseller by operating a direct sales channel. They first summarize the literature on supplier encroachment in settings that do not consider asymmetric information. Then, they summarize appropriate results for the implications of informational asymmetry in traditional channels in which a supplier sells exclusively through a reselling channel. Finally, the authors show that many of the results that are obtained for either supplier encroachment or information asymmetry in isolation are quite different from those when they are combined.
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