Is Producing a Private Label Counterproductive for a Branded Manufacturer?

Autor: Fabian Bergès, Zohra Bouamra-Mechemache
Přispěvatelé: Groupe de recherche en économie mathématique et quantitative (GREMAQ), Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de la Recherche Agronomique (INRA)-Université Toulouse 1 Capitole (UT1), Université Fédérale Toulouse Midi-Pyrénées-Université Fédérale Toulouse Midi-Pyrénées
Jazyk: angličtina
Rok vydání: 2011
Předmět:
Zdroj: European Review of Agricultural Economics
European Review of Agricultural Economics, Oxford University Press (OUP), 2012, 39 (2), pp.212-239. ⟨10.1093/erae/jbr006⟩
ISSN: 0165-1587
1464-3618
DOI: 10.1093/erae/jbr006⟩
Popis: 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 constraints 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.
Databáze: OpenAIRE