000201521 001__ 201521 000201521 005__ 20210122074712.0 000201521 0247_ $$2doi$$a10.22004/ag.econ.201521 000201521 037__ $$a1803-2016-142515 000201521 041__ $$aeng 000201521 245__ $$aRole of Bargaining in Marketing Channel Games of Quality Choice and Profit Share 000201521 260__ $$c2007-12 000201521 269__ $$a2007-12 000201521 300__ $$a44 000201521 336__ $$aWorking or Discussion Paper 000201521 490__ $$aFSWP 000201521 490__ $$a2007-02 000201521 520__ $$aSince the 1980s, increased concentrations across marketing channels have changed bargaining relationships between retailers and manufacturers both in North America and in Europe. At the same time contract mechanisms within the marketing channels have become more complex and private label market share have grown rapidly. This paper Örst investigates the implications of bargaining between manufacturers and retailers. The analysis applies to an arbitrary number of manufacturers and retailers, and holds under general technology and product di§erentiation conditions, assuming that each retailer acts as a monopolist on its own market. Under Nash bargaining, we show that two widely used types of contracts (quantity forcing contracts and two-part-tari§ contracts) are su¢ cient to obtain e¢ ciency in the channel conditionnally on products speciÖcations but importantly generate a di§erent sharing of surplus. We then investigate the implications for non cooperative quality choices made before the bargaining stage. We examine how the bargaining power of retailers and manufacturers a§ect the quantity, pricing and quality decisions. This provides useful insights into the changing relationships between manufacturers and retailers. Our analysis helps explain the recent growth of private labels, exclusive products for retailers designed by national brand manufacturers, the growing use of side payments and other emerging trade practices. 000201521 650__ $$aFood Consumption/Nutrition/Food Safety 000201521 650__ $$aResearch and Development/Tech Change/Emerging Technologies 000201521 700__ $$aBontems, Philippe 000201521 700__ $$aDhar, Tirtha 000201521 700__ $$aChavas, Jean- Paul 000201521 8564_ $$92b1587a6-2cc7-4ccf-b68f-25e7fcaeda20$$s392601$$uhttps://ageconsearch.umn.edu/record/201521/files/wp2007-02.pdf 000201521 887__ $$ahttp://purl.umn.edu/201521 000201521 909CO $$ooai:ageconsearch.umn.edu:201521$$pGLOBAL_SET 000201521 912__ $$nSubmitted by Abigail Porter (porte542@umn.edu) on 2015-04-13T18:09:41Z No. of bitstreams: 1 wp2007-02.pdf: 392601 bytes, checksum: d803cf53bb0dc550abe2950a5a97bb75 (MD5) 000201521 912__ $$nMade available in DSpace on 2015-04-13T18:09:42Z (GMT). No. of bitstreams: 1 wp2007-02.pdf: 392601 bytes, checksum: d803cf53bb0dc550abe2950a5a97bb75 (MD5) Previous issue date: 2007-12 000201521 913__ $$aLicense granted by Abigail Porter (porte542@umn.edu) on 2015-04-13T18:01:57Z (GMT): <center> <h2> Deposit Agreement </h2> </center> I represent that I am the creator of the digital material identified herein (&ldquo;Work&rdquo;). I represent that the work is original and that I either own all rights of copyright or have the right to deposit the copy in a digital archive such as AgEcon Search. I represent that in regard to any non-original material included in the Work I have secured written permission of the copyright owner (s) for this use or believe this use is allowed by law. I further represent that I have included all appropriate credits and attributions. I hereby grant the Regents of the University of Minnesota (&ldquo;University&rdquo;), through AgEcon Search, a non-exclusive right to access, reproduce, and distribute the Work, in whole or in part, for the purposes of security, preservation, and perpetual access. I grant the University a limited, non-exclusive right to make derivative works for the purpose of migrating the Work to other media or formats in order to preserve access to the Work. I do not transfer or intend to transfer any right of copyright or other intellectual property to the University. If the Deposit Agreement is executed by the Author�s Representative, the Representative shall separately execute the following representation: I represent that I am authorized by the Author to execute this Deposit Agreement on behalf of the Author. 000201521 980__ $$a1803 000201521 982__ $$gUniversity of Wisconsin>Department of Agricultural and Applied Economics>Food System Research Group>Working Papers