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The Impact of Upfront Payments on Assortment Decisions in Retailing

Aufsätze referiert extern - 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.

Vanessa von Schlippenbach

Research Associate

Pio Baake

Research Director Regulation in the Firms and Markets Department