ハン ソウ   PAN CONG
  潘 聡
   所属   京都産業大学  経済学部 経済学科
   職種   准教授
言語種別 英語
発行・発表の年月 2022/02
形態種別 研究論文
標題 Inviting An Entrant as A Survival Strategy to Fight Against Supplier Encroachment
執筆形態 共著
掲載誌名 Social Science Research Network Discussion Paper
掲載区分国外
著者・共著者 Yuta Kittaka, Cong Pan
概要 In practice, we have witnessed retailers inviting entrants to tackle the encroachment of their manufacturers. This study discusses the possible benefits of inviting entrants. We consider a model comprising one retailer and one manufacturer. The manufacturer decides whether to encroach or supply the retailer; The retailer decides whether to help a third-party firm overcome its entry barrier. Contrary to most existing models that assume the retailer to be more advantaged in retailing than the manufacturer, we allow the retailer to be either more or less advantaged. We show that whether firms compete in quantity or price, the manufacturer, in the presence of an entrant, may choose to supply the retailer even if the latter is less advantaged. This is because, in such scenario, the manufacturer treats the retailer as a strategic collaborator to either restrict the entrant's market share or alleviate the downstream competition.