Comment on “A Comparison of the Wholesale Model and the Agency Model in Differentiated Markets”

We revisit the wholesale model and the agency model in differentiated markets of Lu ( Review of Industrial Organization, 51 , 151–172, 2017) and show the changes of the equilibrium outcomes of consumer surplus and social welfare. Unlike Lu ( Review of Industrial Organization, 51 , 151–172, 2017), we find that: (i) social welfare is always greater in agency model than in wholesale model; and (ii) different rankings of equilibrium aggregate profits and social welfare are obtained under the two models.