Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159713
Authors: 
Lambertini, Luca
Year of Publication: 
2013
Series/Report no.: 
Quaderni - Working Paper DSE 874
Abstract: 
Zaccour (2008) investigates the behaviour of a marketing channel where firms invest in advertising to increase brand equity, showing that an exogenous twopart tariff cannot be used to replicate the vertically integrated monopolist's performance. I revisit the same model proving the existence of a multiplicity of franchising contracts taht can do the job. In particular, I set out by illustrating an optimal two-part tariff specified as a linear function of the upstream firm's advertising effort, performing this task both in the static and in the dynamic game. then, I show that an analogous result emerges (i) in the static game by writing the fixed component of the two-part tariff as a non-linear function of the manufacturer's advertising effort; and (ii) by using a contract which is linear in the brand equity, in the dynamic case.
JEL: 
L21
M31
M37
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

Files in This Item:
File
Size
425.11 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.