Supply Chain Structure and Product Variety

Abstract

Recent research lends credence to the belief that supply chain structure and product varietyare closely linked. We explore the effect of supply chain configuration on product variety, in a competitive setting. We treat both non-functional as well as functional variety, and for various supply chain configurations we examine equilibrium variety outcomes, assuming that the structure of the market can be represented by a static one-period model belonging to the class of Market Share Attraction Models.