Slotting Allowances and Scarce Shelf Space
نویسندگان
چکیده
منابع مشابه
Slotting 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...
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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...
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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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Considerable controversy and debate surrounds the practice of slotting allowances, or fees, paid by manufacturers for obtaining the patronage of retailers. To date, regulators have yet to agree on public policy toward these practices: at least one federal antitrust agency suggests that slotting fees may be competitive, another has conducted investigations into these practices, and still another...
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ژورنال
عنوان ژورنال: Journal of Economics & Management Strategy
سال: 2010
ISSN: 1058-6407
DOI: 10.1111/j.1530-9134.2010.00262.x