CHANNEL CONTROL MECHANISMS: EXCLUSIVITY AND MINIMUM ADVERTISED PRICE POLICIES

This dissertation investigates key strategies for managing brand-reseller relationships,focusing on exclusivity agreements and pricing policies, and their impact on wholesales, pricing,and trade dynamics. Essay 1 examines the effects of exclusive reseller agreements on wholesalepricing, trade allowances, and assortment decisions. Using a Three-Stage Least Squares (3SLS)approach, it reveals how exclusivity—whether through SKUs, (sub)brands, or product tiers—shapes manufacturer-retailer dynamics, with outcomes contingent on retailer positioning andstrategic focus. Essay 2 analyzes the implementation and effects of minimum advertised price(MAP) policies using a difference-in-differences framework, where results explore the policy’seffects on manufacturer wholesales and trade-mix dynamics. Essay 3 utilizes a difference-in-differences framework with Keepa data comparing U.S. brands adopting MAP policies with acontrol group from the U.K., it uncovers the policies' influence on pricing, the number of sellers,and the competitive dynamics of the buy box. Where the broader implications of these strategieson channel governance and retailer behavior, synthesizing insights from exclusive agreementsand MAP policy enforcement. Together, these essays provide actionable recommendations formanufacturers navigating complex channel dynamics to protect brand equity and optimizeperformance.