We analyze below-cost pricing in retail markets and examine its impact on social welfare as well as on suppliers' incentives to invest in quality. Considering negotiations about a linear wholesale price between the retailer and her suppliers, we find that below-cost pricing aggravates the double...

We analyze below-cost pricing in retail markets and examine its impact on social welfare as well as on suppliers' incentives to invest in quality. Considering negotiations about a linear wholesale price between the retailer and her suppliers, we find that below-cost pricing aggravates the double...

Die von der Bundesregierung geplante Verschärfung der Preissetzungsregeln im Einzelhandel sieht vor, dass Einzelhändler Güter nicht mehr zu Preisen verkaufen dürfen, die unter den Einstandspreisen liegen. Eine solche Preispolitik ist schon heute unzulässig, wenn damit kleinere Konkurrenten...