Vertical Agreements: Motivation and Impact

Verouden, Vincent

doi:10.2139/ssrn.1147717

Cited by 6 publications

(5 citation statements)

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“…One of the vertical externalities frequently encountered in contracts with vertical structures is double (or multiple) marginalization. Double marginalization is the route taken by final products from the producer to the final consumer through a few intermediaries eager to earn revenues above marginal costs (Verouden, 2008).…”

Section: ) Internalization Of Externalities Using Vertical Restraintsmentioning

confidence: 99%

“…In another economic model, presented by Vincent Verouden (2008), double marginalization in vertically constructed contracts between independent firms is analysed.…”

Section: ) Internalization Of Externalities Using Vertical Restraintsmentioning

confidence: 99%

“…At the same time, due to the existence of two successive marginal indicators (p> pw and pw >c), the final resale price will be too high from the point of view of the whole vertical structure: the resale price is p m (pw), where pw is the optimal price from the supplier's perspective, instead of p m (c), which would have been more correct, since c is the marginal cost of the whole vertical structure. The price distortion arises because the distributor in setting the resale price does not consider the effect it will have on the supplier's profit; nor does the supplier take into account the profit that will accrue to the distributor (Verouden, 2008).…”

Section: ) Internalization Of Externalities Using Vertical Restraintsmentioning

confidence: 99%

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Vertical agreements on digital markets

Parcalab

2023

Development Through Research and Innovation - 2022

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Introduction: Moldovan competition regulations have been modernized in 2012 in the spirit of European directives. However, European entrepreneurial experience, competitive culture, and case law in the field of competition rules’ enforcement are far above. The absence of an extensive experience in this field leads often to confusion about the practical application of competition rules, and the risk exists that pro-competitive economic behaviour is wrongly blamed as an anti-competitive practice. Vertical restraints may be often identified in business contracts with vertical structures, such as supply, distribution, franchising, and agency agreements, whether such contracts are implemented in traditional or digital markets. Digitization and innovative technological solutions have substantially changed the production and distribution chain of goods and services.

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Section: ) Internalization Of Externalities Using Vertical Restraintsmentioning

confidence: 99%

“…In another economic model, presented by Vincent Verouden (2008), double marginalization in vertically constructed contracts between independent firms is analysed.…”

Section: ) Internalization Of Externalities Using Vertical Restraintsmentioning

confidence: 99%

Section: ) Internalization Of Externalities Using Vertical Restraintsmentioning

confidence: 99%

See 1 more Smart Citation

Vertical agreements on digital markets

Parcalab

2023

Development Through Research and Innovation - 2022

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“…Power and dependence relations within supply chains can be asymmetric. When an organization does something that negatively affects another organization or consumers, and the organization is not punished, opportunistic behaviours occur and there is a negative externality (Verouden, 2005). These behaviours are highly important when trying to understand demand and without such an understanding the effectiveness of DCM can be jeopardized.…”

Section: Demand Thrustsmentioning

confidence: 99%

The gateway to a Canadian market‐driven agricultural economy

Charlebois

2008

British Food Journal

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Purpose -The purpose of this paper is to provide a structured demand chain design framework that can be linked with gateway and corridor management practices. Design/methodology/approach -The model in this paper presents supply and demand thrusts that could leverage Canada's position in international food trade. Findings -Since a direct correlation exists between the wealth of a nation and how it consumes food, the paper first presents five utilities and several factors that are perceived differently by customers once a nation becomes affluent. Then it presents supply and demand thrusts that could leverage Canada's position in international food trade. Finally, a demand chain design framework is suggested.Research limitations/implications -The framework is meant to be organically generic and not applied to one specific commodity or market, as all commodities and targeted markets necessitate an idiosyncratic approach. Although it is met to be applicable to topographies that offer logistical challenges such as Canada. Practical implications -It has been recognized that agriculture and food companies have a long tradition of being commodity-driven, with an emphasis on production technology, high volumes, and quality consistency. In the context of global hyper-competitivity, the ability to understand customer needs and adapt to a wider variety of customer situations will become crucial. Originality/value -Without being specific to a targeted market or commodity, a demand chain management framework for food products is presented which provides an integrative approach for demand chain design based on food marketing practices, and which requires continuous evaluation of perceived utilities by customers.

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“…Wichtig ist zunächst festzuhalten, dass vertikale Beschränkungen sich von horizontalen Vereinbarungen unterscheiden, welche von Unternehmen getroffen werden, die auf derselben Wertschöpfungsstufe tätig sind, also eigentlich im direkten Wettbewerb miteinander stehen (vgl. Motta, 2004 Motta, 2004;Lafontaine und Slade, 2008;Rey und Vergé, 2008;Verouden, 2008;Schwalbe, 2011). Ist das primäre Motiv für den Abschluss von Vertikalvereinbarungen mit Bindungsklauseln die Ausdehnung bzw.…”

Section: Introductionunclassified

Einschränkungen der Preisgestaltung im Einzelhandel aus wettbewerbsökonomischer Perspektive

Haucap

Klein²

2012

Vertikale Preis- Und Markenpflege Im Kreuzfeuer Des Kartellrechts

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Vertical Agreements: Motivation and Impact

Cited by 6 publications

References 0 publications

Vertical agreements on digital markets

Vertical agreements on digital markets

The gateway to a Canadian market‐driven agricultural economy

Einschränkungen der Preisgestaltung im Einzelhandel aus wettbewerbsökonomischer Perspektive

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