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We examine manufacturers' decisions of whether and how to offer their products for sale over the internet. Manufacturers that rely on promotion of their products by brick and mortar retailers must consider the possibility that internet retailers can free ride off of that promotional effort. This...
Persistent link: https://www.econbiz.de/10012470662
We examine manufacturers' decisions of whether and how to offer their products for sale over the internet. Manufacturers that rely on promotion of their products by brick and mortar retailers must consider the possibility that internet retailers can free ride off of that promotional effort. This...
Persistent link: https://www.econbiz.de/10014036470
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Is free riding bad for competition in the markets? Is it good and necessary to promote competition in the markets? Does free riding (being good or bad) depend on a market structure issue? A new pro-competitive justification arose since Leegin overturned Dr. Miles Court decision giving the...
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Leegin and the literature on resale price maintenance (RPM) have largely overlooked the Internet phenomenon despite the fact that it has substantially changed the way many consumers shop. This paper looks at the characteristics of Internet retailing and explores how they may affect the free...
Persistent link: https://www.econbiz.de/10014197444
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policy to maintain control of the selling price. With a MAP, the manufacturer pays part of the retailer's advertising … expenses. Our results illustrate that when the consumer’s price sensitivity is lower than their advertising sensitivity, both …
Persistent link: https://www.econbiz.de/10013214605