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We analyze how consumer preferences for one-stop shopping affect the bargaining relationship between a retailer and its suppliers. One-stop shopping preferences create "demand complementarities" among otherwise independent products which lead to two opposing effects on upstream merger...
Persistent link: https://www.econbiz.de/10009160881
Consumers increasingly prefer to bundle their purchases into a single shopping trip, inducing complementaries between initially independent or substitutable goods. Taking this one-stop shopping behavior into account, we show that slotting fees may emerge as a result of a rent-shifting mechanism...
Persistent link: https://www.econbiz.de/10009755718
We analyze how consumer preferences for one-stop shopping a¤ect the (Nash) bargaining relationships between a retailer and its suppliers. One-stop shopping preferences create demand complementarities among otherwise independent products which lead to two opposing effects on upstream merger...
Persistent link: https://www.econbiz.de/10011715307