Slotting Allowances and Resale Price Maintenance: A Comparison of Facilitating Practices
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...
متن کاملOligopoly price discrimination and resale price maintenance
Oligopoly price discrimination in the retail market prevents a manufacturer from inducing optimal retail margins through any wholesale price. This motivates the manufacturer to impose resale price maintenance. In a model of third-degree price discrimination by rival retailers, a retail price ceiling (or floor) enables the manufacturer to restore the first best. Imposing a fixed retail price is ...
متن کاملResale Price Maintenance and Collusion
The paper revisits the conventional wisdom according to which vertical restrictions on retail prices help upstream firms to collude. We analyze the scope for collusion with and without resale price maintenance (RPM) when retailers observe local shocks on demand or retail costs. In the absence of RPM, retail prices react to retailers’ information and deviations from collusive behavior are thus d...
متن کاملExclusionary Minimum Resale Price Maintenance∗
An upstream manufacturer can use minimum resale price maintenance (RPM) to exclude potential competitors. RPM lets the incumbent manufacturer transfer profits to retailers. If entry is accommodated by retailers, upstream competition leads to fierce downstream competition and the breakdown of RPM. Thus, via RPM, retailers internalize the effect of accommodating entry on the incumbent’s profits. ...
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...
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ژورنال
عنوان ژورنال: The RAND Journal of Economics
سال: 1991
ISSN: 0741-6261
DOI: 10.2307/2601011