Slotting allowances and price‐cost margins: A note
نویسندگان
چکیده
منابع مشابه
Slotting Allowances and Price-Cost Margins: A Note
It has become common practice for retail grocers to charge grocery manufacturers a slotting allowance for placing products on the retail shelf. Manufacturers view the allowance as anti-competitive. Retailers view it as compensation for the risks associated with stocking new products. The largely theoretical literature on the subject is consistent with both views. This article proposes an empiri...
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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...
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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 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: Agribusiness
سال: 2001
ISSN: 0742-4477,1520-6297
DOI: 10.1002/agr.1025.abs