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and sellers for access. What is the effect of for-profit intermediation on seller investment incentives? Investments in … incentives with competing for-profit platforms. However, we show that for-profit intermediation may lead to overinvestment when … thus access prices. We characterize the effect of for-profit intermediation on investment incentives depending on the …
Persistent link: https://www.econbiz.de/10014054108
We study the implications of different contractual forms in a market with an incumbent upstream monopolist and free downstream entry. We show that traditional conclusions regarding the desirability of linear contracts radically change when entry in the downstream market is endogenous rather than...
Persistent link: https://www.econbiz.de/10012824081
Manufacturer-retailer relationships are often cited as an important determinant in product distribution. By coordinating the channel and aligning incentives, relationships can significantly affect both manufacturers’ and retailers’ profits and contribute to market concentration. However,...
Persistent link: https://www.econbiz.de/10013231675
Slotting allowances are fees paid by manufacturers to get access to retailers' shelf space. Both in the USA and Europe, the use of slotting allowances has attracted attention in the general press as well as among policy makers and economists. One school of thought claims that slotting allowances...
Persistent link: https://www.econbiz.de/10013317427
A manufacturer chooses the optimal retail market structure and bilaterally and secretly contracts with each (homogeneous) retailer. In a classic framework without asymmetric information, the manufacturer sells through a single exclusive retailer in order to eliminate the opportunism problem....
Persistent link: https://www.econbiz.de/10012317383
Business to Business (B2B) causes a significant contraction of transaction costs. According to the Coase paradigm we would thus expect a deverticalization of the industry and broader scope for anonymous market mechanisms. In reality, such expectations are not fully borne out by the facts. When...
Persistent link: https://www.econbiz.de/10014128566
Slotting fees, per unit time payments made by manufacturers to retailers for shelf space, have become increasingly prevalent in grocery retailing. Shelf space contracts are shown to be a consequence of the normal competitive process when retailer shelf space is promotional, in the sense that the...
Persistent link: https://www.econbiz.de/10014063196
Throughout history, vertical merger waves have played a crucial role in shaping industries and market structures. However, opinions on the competitive and welfare effects associated with this phenomenon differ. Some argue that vertical merger waves increase market power and enable the exclusion...
Persistent link: https://www.econbiz.de/10014345586
Retailer bargaining power is an important aspect of many international antitrust investigations. Size and market share analysis are often the cornerstones of bargaining power identification. However, other factors, like consumer behavior, i.e. "one-stop shopping", can heavily affect the...
Persistent link: https://www.econbiz.de/10010486634
In two-sided markets a platform allows consumers and sellers to interact by creating sub-markets within the platform marketplace. For example, Amazon has sub-markets for all of the different product categories available on its site, and smartphones have sub-markets for different types of...
Persistent link: https://www.econbiz.de/10013004938