2. Bucklin, Louis P.
     Modeling the international gray market for public policy decisions.
   International Journal of Research in Marketing v10, n4 (Dec 1993):387-405.
     Pub type:  Studies; Experimental.

Abstract: Composed of a heterogeneous group of resellers, the members of the
     international gray market surreptitiously, but legally, acquire genuine
     brand goods from various sources and remarket them around the world in
     competition with channels authorized by trademark owners.  These owners
     charge that this practice of global arbitrage unfairly damages the value
     of their brands and channel relationships, and they seek government
     protection against these imports under national trademark laws.  Because
     of the sensitivity of gray market activities, evidence of harm to
     authorized channel members is difficult to verify.  A modeling approach is
     used to disentangle the web of relationships and to identify the economic
     impact of international gray market trading.  The results show that though
     the global gray markets can make channel management a painful exercise,
     the damage is insufficient to warrant prohibition by public agency.