of multi - product retail markets Naked slotting fees for vertical control

نویسندگان

  • Robert Innes
  • Stephen F. Hamilton
چکیده

Slotting fees are fixed charges paid by food manufacturers to retailers for access to the retail market. This note considers this practice in the context of multi-product markets with imperfectly competitive retailers, a monopoly supplier of one good, and competitive suppliers of other goods. We show how the monopolist and the retailers can use bnakedQ slotting fees–charges imposed on the suppliers of other goods–to obtain vertically integrated monopoly profits.

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Naked Slotting Fees for Vertical Control of Multi-Product Retail Markets

Slotting fees -fixed charges paid by food manufacturers to retailers for access to the retail market -are both increasingly common and increasingly controversial. This note shows how imperfectly competitive retailers and a monopolistic supplier of one good can use "naked" slotting fees -charges imposed on competitive suppliers of other goods -to achieve a vertically integrated multi-good monopoly.

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تاریخ انتشار 2009