4.6 Article

Supplier Encroachment with Multiple Retailers

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Summary: The study demonstrates that private cost information from the upstream can improve channel efficiency and alleviate the exacerbation of channel conflict caused by retailers' information disadvantage. While traditional wisdom suggests that cost information asymmetry reduces efficiency, it does not hold true in dual-channel settings, as incorporating cost information asymmetry can lead to unexpectedly positive effects on the channel, turning the retailers and channel from victims to beneficiaries of manufacturer actions.

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