18. Channel Structure Decisions for Manufacturers with Service Outsourcing

—Yusen Xia, Department of Managerial Sciences, Robinson College of Business, Georgia State University

—Tiaojun Xiao, School of Management Science and Engineering, Nanjing University

—G. Peter Zhang, Department of Managerial Sciences, J. Mack Robinson College of Business, Georgia State University


Motivated by observations of decentralized distribution channels and service outsourcing, we develop a game model to study the distribution channel structure decisions for two manufacturers competing on price and services. Each manufacturer has two channel structure strategies: centralization and decentralization. We explore how the retailer’s service cost influences ...

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