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The Impact of Upfront Payments on Assortment Decisions in Retailing

Referierte Aufsätze Web of Science

Pio Baake, Vanessa von Schlippenbach

In: Review of Industrial Organization 44 (2014), 1, S. 95-111


There is a contentious debate about the exclusionary effects of upfront payments to be made by manufacturers to place their products on retailers' shelves. Analyzing a two-stage bargaining process with one downstream retailer and a pool of upstream manufacturers, we find that upfront payments lead to a smaller assortment if the retailer's bargaining power is high enough and the suppliers' products are close substitutes.

Pio Baake

Research Director Regulation in the Firms and Markets Department