Analyzing a sequential bargaining framework with one retailer and two suppliers of substitutable goods, we show that slotting fees may emerge as a result of a rent-shifting mechanism when consumer shopping costs are taken into account. If consumers economize on their shopping costs by bundling...

We consider a downstream oligopoly model with one dominant and several fringe retailers, who purchase a manufacturing product from a monopoly supplier. We then examine how the supplier's outside option influences the relation between the dominant retailer's bargaining power and the equilibrium...

Conventional wisdom in marketing holds that retailer forward buying (1) is a consequence of manufacturer trade promotions and (2) stockpiling units helps the retailer but hurts the manufacturer. This paper provides a deeper understanding of forward buying by analyzing it within the context of...

The purpose of this paper was to find out if Costco's “treasure hunt” strategy was effectively attracting customers and increasing spending per visit. It was an exploratory research to provide insights in the perceptions of Costco customers in reference to new, seasonal, and premium products...

This paper develops and estimates a structural model of differentiated-products demand in an environment with in-store displays and costly consumer price search. This investigation is motivated by two stylized facts on retail markets. First, the prevalence of retail “sales” means that...

To influence demand, some online retailers post messages (e.g., “5 units or less left in stock”) on their product pages to signal impending stockouts. These “scarcity” messages provide consumers “partial” inventory information, revealing only an upper bound on the number of units...

This paper analyzes drivers of compulsive buying behavior induced by store based promotion through empirical investigation in Mexico. The buying behavior in reference to point of sales promotions offered by retailing firms and determinants of sensitivity towards stimulating shopping arousal and...