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Bergès, Fabian
and Bouamra-Mechemache, Zohra
(2009)
Is Producing a Private Label Counterproductive for a Branded Manufacturer?
TSE Working Paper, n. 09-130
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Abstract
Branded food manufacturers vindicate the use of excess production capacities (idle otherwise) to justify their production of retailers' brands. We study the distributor and food manufacturer's private label strategy for production within a framework featuring endogenous store brand quality, bargaining power, possible differences in production technology and potential capacity constraint for the branded manufacturer. According to the structure of capacity constraint (applying to both products or private label only), the retailer may prefer to choose an independent firm whereas he selected the branded manufacturer when unconstrained. The conclusions of our article thus partially confirm branded manufacturers' thinking: they may produce store brands when they are not capacity constrained
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | December 2009 |
| JEL Classification: | L11 - Production, Pricing, and Market Structure; Size Distribution of Firms L13 - Oligopoly and Other Imperfect Markets Q13 - Agricultural Markets and Marketing; Cooperatives; Agribusiness |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Site: | UT1 |
| Date Deposited: | 18 Jan 2012 06:01 |
| Last Modified: | 02 Apr 2021 15:36 |
| OAI Identifier: | oai:tse-fr.eu:22262 |
| URI: | https://publications.ut-capitole.fr/id/eprint/3304 |
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