Supply Channel Stage-Games and Horizontal Merger Simulation in the Refrigerated Orange Juice Industry
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This paper seeks to explore the implementation of more realistic supply channel interactions in merger simulation. In particular, a two-stage pricing game is used to conduct merger simulations in the refrigerated orange juice category. The major finding is that practical use of stage-game modeling in merger simulation will not be possible until the relationship between demand specification and retail pass-through rates is better understood.