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A Unifying Analytical Framework for Loyalty Rebates

Scott Morton, Fiona M. - 2017

loyalty rebates. We urge antitrust courts and enforcers to recognize the construction of a loyalty rebate contract as an act … reasoning that characterizes American discounting doctrine today, we simplify by using the characteristics of a loyalty rebate … contract to calculate one metric - the penalty imposed on the entrant by the rebate contract. Specifically, we measure how much …

Persistent link: https://www.econbiz.de/10012968277

The Rebate Effect : An Attempt to Measure the Effects of Loyalty Discounts on the Competitive Process

Rencoret, Pedro - 2021

The discussion regarding what should be the proper legal treatment for loyalty discounts (alsoknown as “fidelity discounts” or “loyalty rebates”) in antitrust law is characterized by a stronglack of consensus among enforcement authorities and scholars, being no agreement as to whetherit...

Persistent link: https://www.econbiz.de/10013242205

How Loyalty Discounts Can Perversely Discourage Discounting : Comment

Eilat, Assaf - 2010

In his recent paper entitled “How Loyalty Discounts Can Perversely Discourage Discounting,” Professor Einer Elhauge argues that exclusive contracts with loyalty discounts offered by a single incumbent seller can create anticompetitive effects in a broad range of settings. In this comment we...

Persistent link: https://www.econbiz.de/10013147399

Robust Exclusion Through Loyalty Discounts

Elhauge, Einer; Wickelgren, Abraham L. - 2010

We consider loyalty discounts whereby the seller promises to give buyers who commit to buy from it a lower price than the seller gives to uncommitted buyers. We show that an incumbent seller can use loyalty discounts to soften price competition between itself and a rival, which raises market...

Persistent link: https://www.econbiz.de/10014198559

How Loyalty Discounts Can Perversely Discourage Discounting

Elhauge, Einer - 2010

Loyalty discounts are agreements to sell at a lower price to buyers who buy all or most of their purchases from the seller. This article proves that (assuming no efficiency justifications) loyalty discounts can create anticompetitive effects, not only because they can impair rival efficiency,...

Persistent link: https://www.econbiz.de/10014214309

Robust Exclusion through Loyalty Discounts with Buyer Commitment

Elhauge, Einer; Wickelgren, Abraham L. - 2012

We show that loyalty discounts with buyer commitments create anticompetitive effects beyond those possible with pure exclusive dealing. The loyalty discount adds a seller commitment to maintain a distinction between the loyal and disloyal price. This seller commitment reduces the seller's...

Persistent link: https://www.econbiz.de/10014167004

An Evidence-Based Approach to Exclusive Dealing and Loyalty Discounts

Wright, Joshua D. - 2009

At the recent Section 2 hearings focused on the antitrust analysis of exclusive dealing contracts, a sensible consensus view emerged that a necessary condition for anticompetitive harm in an exclusive dealing or de facto exclusive contract is that the contract deprives rivals of the opportunity...

Persistent link: https://www.econbiz.de/10014206298

Loyalty Discounts and Price-Cost Tests

Calzolari, Giacomo - 2019

We analyze, by means of a formal economic model, the use of price-cost tests to assess the competitive effects of loyalty discounts. In the model, a dominant firm enjoys a competitive advantage over its rivals and uses loyalty discounts as a means to boost the demand for its product. We show...

Persistent link: https://www.econbiz.de/10012899384

Competing with Loyalty Discounts

Greenlee, Patrick; Reitman, David S. - 2005

Loyalty discounts, offered to customers that meet purchase thresholds, can shift share from rival firms. In a differentiated product duopoly, only one firm employs a program that customers adopt in equilibrium. Whenever consumers strongly prefer the product of said firm, such discounts increase...

Persistent link: https://www.econbiz.de/10014029562

Loyalty Rebates and the Competitive Process

Zenger, Hans - 2012

The degree of divergence between U.S. and European case law on the proper legal treatment of loyalty rebates is larger than in almost any other field of international antitrust law. Whereas U.S. jurisprudence has traditionally considered loyalty rebates to be a pro-competitive business practice,...

Persistent link: https://www.econbiz.de/10014041291

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