Retail chains are observed in many industries. The question addressed here is whether retail chains can exploit buyer power by excluding some brands. In a theoretical model with two differentiated producers and a single retailer, the authors show that a retailer will require exclusivity (exclude...

We study the performance of jointly owned production units where upstream firms sell inputs to a downstream final market producer. It is found that, compared to integrated firms, co-ownership leads to overinvoicing of input prices (transfer prices), resulting in lower aggregate profits. Tax and...