Slotting allowances and retail product variety under oligopoly
| Autor: | Robert Innes, Stephen F. Hamilton |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
Slotting fees
vertical contracts monopolization. Agribusiness Agricultural and Food Policy Industrial Organization Marketing L13 L14 L42 D43 Economics and Econometrics Shelf space 05 social sciences Variety (cybernetics) Oligopoly Unit demand Commerce Spatial model 0502 economics and business Business Product (category theory) 050207 economics Monopolization Finance 050205 econometrics Agribusiness |
| Zdroj: | Economics Letters. 158:34-36 |
| ISSN: | 0165-1765 |
| DOI: | 10.1016/j.econlet.2017.06.033 |
| Popis: | 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. To date, the literature has focused on the effect of the practice on retail prices; however, slotting allowances also have the potential to alter the range of products available to consumers. Our analysis reveals that the strategic use of slotting allowances by oligopoly firms leads to a superior allocation of product variety among retailers. Indeed, absent price effects, we show that slotting allowances lead to the socially optimal provision of product variety. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|
Full Text from ScienceDirect