ABSTRACT
Members of distribution channels are often involved in long-term interdependent relations. The interdependencies can arise, for example, as they negotiate the delivery terms, promotional support, and price (Eliashberg, et al. 1986) for a given product. Or, they could arise as a consequence of agreements to be reached for a set of products sold by one manufacturer to the same retailer. In either case, the agreement reached with respect to one of the aspects is likely to be dependent upon that reached for another. For example, in the single product case the dealer may agree to push/promote the manufacturer's product more vigorously in return for a lower price, say. Or, in the multiple product scenario, the manufacturer may agree to provide prompt delivery of an established popular product in return for end-of-aisle display for a new product.
