The Effects of Differences between Firms' Business Purposes on the Double Marginalization Issue

摘要

Double marginalization plays a key role in the relations between manufacture and retailer. This paper discusses this question from the perspective of business purpose. We hold the view that when manufacture's business purpose is maximizing its profit, the double marginalization emerges in the relationship of manufacture and retailer; when manufacture's business purpose is the combination of maximizing its profit and sales revenue as well as maximizing profit and consumers' surplus, double marginalization is not inevitable.