We analyze the impact of the private label production channel on innovation. A retailer may either choose to integrate backward with a small firm (insourcing) or rely on a national brand manufacturer (outsourcing) to produce its private label. The trade-off between insourcing and outsourcing...

We consider one retailer and two manufacturers that have private information about demand characteristics. To ensure truthful revelation, the retailer provides one of the suppliers, i.e. category captain, with a rst-mover advantage in the negotiations. After the negotiation with the retailer is...

We analyze the impact of the private label production channel on innovation. A retailer may either choose a competitive fringe or rely on a brand manufacturer to produce its private label. The trade-o between the two channels is a choice between too much or too little innovation, i.e. quality...