Slotting Allowances and Optimal Product Variety
نویسندگان
چکیده
منابع مشابه
Slotting Allowances and Optimal Product Variety
Some commentators believe that slotting allowances enhance social welfare by providing retailers with an efficient way to allocate scarce retail shelf space. The claim is that, by offering their shelf space to the highest bidders, retailers act as agents for consumers and ensure that only the most socially desirable products obtain distribution. I show that this claim does not hold in a model i...
متن کاملSlotting Allowances and Product Variety in Oligopoly Markets
Slotting fees are fixed charges paid by food manufacturers to retailers for access to the retail market. The role of the practice and its effects on market efficiency are highly controversial. While the literature to date has largely focused on the effect of the practice on retail prices, it is also clear that slotting allowances have the potential to alter product variety in the market equilib...
متن کاملSlotting allowances and information gathering
This paper considers a mechanism design problem in which a retailer motivates a manufacturer to gather information concerning the demand for its new product. The information will be of value to the retailer, in deciding whether to allocate limited shelf space for the new product. The model reveals that if the retailer cannot observe whether the manufacturer has gathered information, then to mot...
متن کاملSlotting Allowances and Scarce Shelf Space
Slotting allowances are lump-sum payments that manufacturers make to retailers for shelf space. They have become increasingly widespread in recent years, particularly in the grocery industry. A popular view is that these payments arise because there are more products to choose from than can be profitably carried given the availability of shelf space. Under this view, slotting allowances arise b...
متن کاملDo slotting allowances harm retail competition?1
Slotting allowances are fees paid by manufacturers to get access to retailers’ shelf space. Both in the USA and Europe, the use of slotting allowances has attracted attention in the general press as well as among policy makers and economists. One school of thought claims that slotting allowances are efficiency enhancing, while another school of thought maintains that slotting allowances are use...
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ژورنال
عنوان ژورنال: The B.E. Journal of Economic Analysis & Policy
سال: 2005
ISSN: 1935-1682,2194-6108
DOI: 10.1515/1538-0637.1083