The Ketchup Marketplace : Retailer , Manufacturers , and Individual Consumers ∗
نویسنده
چکیده
We construct a model of a local ketchup market of a city in Texas that accounts for household, manufacturer, and retailer decisions. That is, the model develops both the demand and the supply side of the market. The demand side is modeled through a latent utility framework allowing for the ‘no-purchase’ option. Accounting for both sides of the market allows one to check for any endogeneity problems on the demand side. The supply side is modeled through the profit maximizing decisions of both the manufacturers and a multi-product retailer. Accounting for both the retailer and the manufacturer decisions allows one to evaluate the degree of manufacturer competition, the retailer-manufacturers interactions, and the retailer product-category pricing. We provide a discussion of the results with regard to channel bargaining, quantity discounts, and retailer
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