An Investigation of the Concept of Power and Power Taxonomy in Channels of Distribution: A Transaction Cost Analysis Perspective

Abstract

This paper reviews the important issues in determining a proper power type for a particular channel structure and indicates a need for a development of an interdisciplinary framework using a transaction cost analysis (TCA). The author summarizes the major vertically integrated channel structures and emphasizes the significant role of exercised power in these systems. Accordingly, TCA relates to the same channel structures in its original use. Expanding on this initial coverage of TCA, the author presents an exploratory framework to guide the use of TCA for the analysis of power and underlines the basic reasons for this use.

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Notes on contributors

S. Altan Erdem

S. Altan Erdem is an Assistant Professor in the Department of Marketing at the University of Houston-Clear Lake. He received his doctorate in marketing from the University of North Texas. His current research interests focus upon channels of distribution, transaction cost analysis, power taxonomy, and causal modeling. His research accomplishments include a number of journal publications and published proceedings.