We investigate two very common pricing schemes for a Stackelberg-dominant retailer: percentage-markup and dollar-markup. We show that when a dominant retailer switches from dollar to percentage markup, the channel’s “overall pie” and the retailer’s “pie-piece” are both enlarged. In...

This paper on "resale price maintenance" (RPM) has three main parts: (i) Using a simple and parsimonious model, we show that even with only one retailer, a "supplier" or "manufacturer" (hereafter "Manu") should impose minimum-RPM under some circumstances but maximum-RPM in others. These two sets...