Channel Power: A Form of Economic Exploitation

Aims to discuss virgin ground in marketing — channel exploitation. Briefly reviews the role of power in channel conflict and public policy recommendations are made. Discusses channel conflict and gives thoughts on how to resolve it with three proposed solutions. Pinpoints Galbraith's power concepts of countervailing power which asserts most markets start as competitive. Explains though, that competition is not required for regulatory purposes, as countervailing power will usually exist, especially in retail goods. Looks at franchising and potential areas of exploitation and closes with public policy recommendations that have the advantage of being in the interest of both small business and consumers.