Firm-like behavior in markets: The administered channel

Abstract Partially cooperative behavior of member firms of the same channel of distribution, normally under the leadership of a dominant firm, is often very firm-like, giving rise to the concept of the administered channel. Analysis suggests that it is information creation and control, and their associated costs, rather than the contract which determines the extent of firm-like behavior. Administered channels are frequent alternatives to vertical integration or entirely market directed allocation, but do not emerge unless the benefits from cooperation exceed the costs of maintaining that cooperation and also can be appropriated by those firms bearing the costs.

[1]  Charles P. Kindleberger,et al.  American Business Abroad : Six Lectures on Direct Investment , 1969 .

[2]  R. Coase.  The Nature of the Firm , 1937 .

[3]  G. Richardson,et al.  The Organisation of Industry , 1972 .

[4]  Michael Etgar,et al.  Channel Domination and Countervailing Power in Distributive Channels , 1976 .

[5]  R. W. Little,et al.  The Marketing Channel: Who Should Lead this Extra-corporate Organization? , 1970 .

[6]  R. Hébert,et al.  The Entrepreneur , 1990 .

[7]  Michael Etgar.  Effects of Administrative Control on Efficiency of Vertical Marketing Systems , 1976 .

[8]  R. Caves.  Organization, Scale, and Performance of the Grain Trade , 1977 .

[9]  R. Emerson.  Power-Dependence Relations , 1962, Power in Modern Societies.

[10]  Bruce E. Mallen,et al.  Functional Spin-Off: A Key to Anticipating Change in Distribution Structure , 1973 .

[11]  George J. Stigler,et al.  The Organization of Industry , 1969 .

[12]  Bruce E. Mallen,et al.  Principles of Marketing Channel Management , 1978 .

[13]  John R. Nevin,et al.  Power in a Channel of Distribution: Sources and Consequences , 1974 .

[14]  Michael Etgar,et al.  Channel Environment and Channel Leadership , 1977 .

[15]  A. Fitzgibbons,et al.  Multinational enterprise and natural resources , 1976 .

[16]  J. Dunning.  Trade, Location of Economic Activity and the MNE: A Search for an Eclectic Approach , 1977 .

[17]  O. Williamson.  Markets and Hierarchies , 1975 .

[18]  H. B. Malmgren.  Information, Expectations and the Theory of the Firm , 1961 .