A Commentary on Distribution-Channels Modeling.- The Bilateral-Monopoly Model and Channel Myths.- Multiple (Exclusive) Retailers.- Multiple (Exclusive) States-of-Nature.- Toward a Manufacturer-Optimal Per-Unit Fee: A Channel-Coordinating Quantity-Discount Schedule.- The Manufacturer-Optimal Two-Part Tariff.- The Channel-Coordinating Menu.- Coordination versus Maximization: Theoretical Analyses.- Coordination versus Maximization: Graphical Analyses.- The Competing-Retailers Model with Channel Breadth.- Modeling a Change in Competitive Substitutability.- Towards a Unifying Theory of Distribution Channels.
Mathematical Models of Distribution Channels identifies eight "Channel Myths" that characterize almost all analytical research on distribution channels. The authors prove that models that incorporate one or more Channel Myths generate distorted conclusions; they also develop a methodology that will enable researchers to avoid falling under the influence of any Channel Myth.
Provides a review of the mathematical modeling literature on distribution channels
Evaluates that literature, offering a significant analytical extension to the existing work
Addresses three central themes: channel coordination; vertical integration vs. decentralization; and the unique aspects of franchizing