Supplier Encroachment in a Nonexclusive Reselling Channel

Hotkar, P and Gilbert, S M (2021) Supplier Encroachment in a Nonexclusive Reselling Channel. Management Science, 67 (9). pp. 5821-5837. ISSN 1526-5501

Full text not available from this repository. (Request a copy)


We consider a setting in which a nonexclusive reseller procures partially substitutable products from two suppliers, one of whom introduces a direct channel. We find that the presence of the second supplier alters many of the existing results about the interactions between a reseller and an encroaching supplier. For instance, the reseller’s and the supply chain’s benefit from the direct channel disappears when the product substitutability is sufficiently large. In addition, when the reseller is nonexclusive, the encroaching supplier may either sell exclusively through its direct channel even when that channel is less efficient than the reselling channel, or sell through both channels even when its direct channel is more efficient than the reselling channel. Neither of these would occur in an exclusive reselling environment with only one supplier. This paper was accepted by Jayashankar Swaminathan, operations management.

Item Type: Article
Subjects: Operations Management
Date Deposited: 01 Aug 2023 22:22
Last Modified: 01 Aug 2023 22:22

Actions (login required)

View Item
View Item