For each product category, the distributor must decide how large its brand assortment will be: very broad(all brands) or narrower, even a single brand(i.e., giv- ing a brand category exclusivity, otherwise known as exclusive dealing). 4 A priori, the importance of assortment leads the distributor(more generally, a downstream chan- nel member) to resist giving a manufacturer category exclusivity. Of course, manufac- turers generally prefer not to be presented alongside their competitors, creating another built-in source of permanent channel conflict. Thus, we have two conflicts. First, manufacturers want to blanket a trading area. with outlets, but the outlets prefer the reverse. Second, downstream channel members prefer to have multiple brands to offer in a category, but manufacturers prefer the reverse. Here are the makings of a negotiated settlement. We have yet a third conflict: Manufacturers want downstream channel members to support their brands vigorously.