Abstract

http://ssrn.com/abstract=1167552
 
 

References (27)



 
 

Citations (3)



 


 



Do Slotting Allowances Harm Retail Competition?


Øystein Foros


Norwegian School of Economics (NHH) - Department of Business and Management Science

Hans Jarle Kind


affiliation not provided to SSRN

2007-12

Scandinavian Journal of Economics, Vol. 110, Issue 2, pp. 367-384, June 2008

Abstract:     
Slotting allowances are fees paid by manufacturers to get access to retailers' shelf space. Both in the USA and Europe, the use of slotting allowances has attracted attention in the general press as well as among policy makers and economists. One school of thought claims that slotting allowances are efficiency enhancing, while another school of thought maintains that slotting allowances are used in an anti-competitive manner. In this paper, we argue that this controversy is partially caused by inadequate assumptions of how the retail market is structured and organized. Using a formal model, we show that there are good reasons to expect anti-competitive effects of slotting allowances. We further point out that competition authorities tend to use an unsatisfactory basis for comparison when analyzing welfare consequences of slotting allowances.

Number of Pages in PDF File: 18

Accepted Paper Series


Date posted: July 22, 2008  

Suggested Citation

Foros, Øystein and Jarle Kind, Hans, Do Slotting Allowances Harm Retail Competition? (2007-12). Scandinavian Journal of Economics, Vol. 110, Issue 2, pp. 367-384, June 2008. Available at SSRN: http://ssrn.com/abstract=1167552 or http://dx.doi.org/10.1111/j.1467-9442.2008.00543.x

Contact Information

Øystein Foros (Contact Author)
Norwegian School of Economics (NHH) - Department of Business and Management Science ( email )
Helleveien 30
Bergen, NO-5045
Norway
Hans Jarle Kind
affiliation not provided to SSRN
No Address Available
Feedback to SSRN


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References:  27
Citations:  3

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