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As policy makers and researchers have acknowledged, there are inherent tensions between maintaining a Universal Service Obligation (USO) combined with full market opening (FMO). These tensions are exacerbated by serious intermodal competition in the form of electronic substitution for both...
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Reconciliation Act of 1990 included a rebate program that featured a most favored customer (MFC) clause. This clause guarantees that … Medicaid gets a fixed rebate on each unit of purchase by Medicaid consumers. The rebate is calculated as the difference between … discriminating monopolist in response to the imposition of MPP or APP rules. Under MPP, the minimum price gross of rebate always …
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We present an exclusionary theory of all-units discounts schemes. These schemes offer a per-unit discount to all units … to partially foreclose the small rival. Our theory suggests that pricing below cost is not necessary for all …
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decision variable for buyers. The current research examines the impact of hassle cost on optimal rebate strategy. An analytical … model is developed that simultaneously determines the supply chain's optimal price, level of rebate value, and rebate …-redemption hassle, while allowing for slippage (as consumers may forget to redeem a rebate), in both a centralized and decentralized …
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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...
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Prevailing tests for whether bundled rebate programs are anticompetitive, including the recent Antitrust Modernization … Commission Recommendation 17, are based on whether some incremental or total price in the rebate program is less than some … appropriate incremental cost. This test presumes that rebate programs, and exclusionary conduct more generally, should be treated …
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