Retailers introduce private-labels in a category not only to gain profits directly from the private-label but also to use as a strategic weapon to elicit concessions from the national brand manufacturers. We show that, in certain categories, the retailer can gain better terms of trade by...

Retailers may introduce a private-label product in a category not only to gain profits directly from the sales of the private-label but also to use as a strategic weapon to elicit concessions from the national brand manufacturers in the category. We model the competition between the national...