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Optimal production channel for private labels: Too much or too little innovation?

Abstract : We analyze the impact of the private label production channel on innovation. A retailer may either choose a competitive fringe or rely on a brand manufacturer to produce its private label. The trade-o between the two channels is a choice between too much or too little innovation, i.e. quality investment, on the private label. On the one hand, when choosing the competitive fringe, the retailer over-invests to increase its buyer power. On the other hand, when the brand manufacturer is selected, a hold-up e ect leads to under-investment. In addition, selecting the brand manufacturer may create economies of scale that spur innovation.
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Preprints, Working Papers, ...
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https://hal.inrae.fr/hal-02810614
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Submitted on : Saturday, June 6, 2020 - 8:40:44 AM
Last modification on : Wednesday, January 26, 2022 - 9:21:06 AM

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  • HAL Id : hal-02810614, version 1
  • PRODINRA : 221668

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Citation

Claire C. Chambolle, Clémence Christin, Guy Meunier. Optimal production channel for private labels: Too much or too little innovation?. 2013. ⟨hal-02810614⟩

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