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A manufacturer's incentives to undertake non-contractible investments depend on the profit margin on her sales to the retailer, and slotting allowances can facilitate such incentives by increasing unit wholesale prices. At first glance, it is tempting to conclude that slotting allowances should...
Persistent link: https://www.econbiz.de/10010273780
A manufacturer's incentives to undertake non-contractible investments depend on the profit margin on her sales to the retailer, and slotting allowances can facilitate such incentives by increasing unit wholesale prices. At first glance, it is tempting to conclude that slotting allowances should...
Persistent link: https://www.econbiz.de/10012770258
We argue in this paper that retailers can strategically position store brands in product space to strengthen their bargaining position when negotiating supply terms with manufacturers of national brands. Using a bargaining framework we model a retailer's decision whether to carry an additional...
Persistent link: https://www.econbiz.de/10014038843
The location of retail establishments in space is a critical decision for firms in the retail market. The rise of e-commerce in recent years has led to the displacement of many offline stores, but the precise mechanisms by which this affects the equilibrium number of stores are not well...
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We consider the spatial competition between two traditional physical (or offline) retailers and an Internet (or online) retailer where the efficiency of the latter differs from that of the former. We assume consumers are heterogeneous across two dimensions: (i) the costs of traveling to either...
Persistent link: https://www.econbiz.de/10012024739