Channels

Question 1

Structure and governance (channel)

Answer 1

Transactional cost economics
Outsourcing is preferred for long-term efficiency (only failure will drive verticalisation)
Mutualisation
Economy of scale and spread of the fixed cost
Competition
As channel can be replaced it provide an incentive to perform effectively
Black hat
Replacement of a channel is not always possible neither free
Difficulties when the product is too complex (technical, learning costs,…)

# Game theory
	Assumptions
		Agents (intermediaries) act in their own interest
	Explore the the roles of various members of the channel and how the actions of these members determine the efficiency of the channel
	Relationship with channel and win-in situation seeking