IDEAS home Printed from https://ideas.repec.org/p/may/mayecw/n630496.html
   My bibliography  Save this paper

The Interaction of Manufacturer and Retailer Expenditure on Image

Author

Listed:
  • Lisa Finneran

Abstract

This paper re-examines the Telser services externality for the case where services required of retailers by manufacturers involve provision of image. It is argued that refusal to supply retailers who attempt to free-ride may be the only vertical restraint which can ensure provision of the services required by the manufacturer. We consider how the existence of a vertical extrnality in image expenditure will affect a manufactuer's choice of such expenditure if the manufacturer's freedom to select retailers is limted (for example by competition policy). We find that whether the manufacturer attempts to compensate or not for a negative image on the part of the outlets supplying his product will depend on returns to scale in both expenditure and on how substitutable is manufacturer image expenditure for retailer expenditure.

Suggested Citation

  • Lisa Finneran, 1996. "The Interaction of Manufacturer and Retailer Expenditure on Image," Economics Department Working Paper Series n630496, Department of Economics, National University of Ireland - Maynooth.
    • Handle: RePEc:may:mayecw:n630496
    as

    Download full text from publisher

    File URL: http://repec.maynoothuniversity.ie/mayecw-files/N630496.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:may:mayecw:n630496. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/demayie.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.