Abstract

This article applies the theory of coalition formation in triads to channels of distribution. The theory explains alternative power strategies of weaker (smaller) channel members to dominance by more powerful channel entities. Six pre‐coalition situations are examined to aid in predicting the possible conditions that may form, given an uneven distribution of power in the channel system. This type of analysis could be used to predict disadvantageous power combinations in the channels of distribution to the overall macro effectiveness of the channel system.

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