Journal of Northeastern University Natural Science ›› 2017, Vol. 38 ›› Issue (9): 1363-1368.DOI: 10.12068/j.issn.1005-3026.2017.09.030

• Management Science • Previous Articles    

Choice of Retailing Channels Based on Parallel Imports

SU Hui-qing, LI Kai, HUANG Wei   

  1. School of Business Administration, Northeastern University, Shenyang 110169, China.
  • Received:2016-04-14 Revised:2016-04-14 Online:2017-09-15 Published:2017-09-08
  • Contact: SU Hui-qing
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Abstract: Channel selection strategies of manufacturers were studied from the perspective of parallel imports(PI). The Stackelberg game models were built under the single channel with authorized imports, and expanded to the double channel with an aim to exploring the effect of parallel imports on licensed production. Based on this, the impact of parallel imports on the channel selection of manufacturers(owners of intellectual property rights) and the consumer welfare were considered. The results showed that manufacturers’ channel selection strategies are influenced by parallel import cost, demand elasticity and production cost. When the demand elasticity differentiation is large, the profit of manufacturers with the single channel is higher regardless of the parallel imports. The manufactures are more likely to choose the double channel while the demand elasticity differentiation between the two countries is declining. In addition, the parallel imports improve the consumer welfare of the PI-recipient market.

Key words: parallel import(PI), authorized import, authorized production, demand elasticity, Stackelberg game

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