Abstract

http://ssrn.com/abstract=493162
 
 

References (10)



 
 

Citations (17)



 


 



Returns Policies and Retail Price Competition


Paddy Padmanabhan


INSEAD

Ivan P. L. Png


National University of Singapore

January 2004


Abstract:     
We show that returns policies increase manufacturer profitability by attenuating price competition between retailers. This effect holds only in the presence of end-user demand uncertainty. The conditions under which a returns policy raises the manufacturer's profit are weaker when retailing is a duopoly than when retailing is a monopoly. This suggests that returns policies serve both to dampen competition and resolve demand uncertainty.

Number of Pages in PDF File: 12

Keywords: Channels, returns, competition, pricing

JEL Classification: D43, D83, L13, M30

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Date posted: February 3, 2004  

Suggested Citation

Padmanabhan, Paddy and Png, Ivan P. L., Returns Policies and Retail Price Competition (January 2004). Available at SSRN: http://ssrn.com/abstract=493162 or http://dx.doi.org/10.2139/ssrn.493162

Contact Information

Paddy V. Padmanabhan
INSEAD ( email )
Boulevard de Constance
Fontainebleau, 77305
France
Ivan P. L. Png (Contact Author)
National University of Singapore ( email )
Singapore, 117543
Singapore
+65 6516-6807 (Phone)
HOME PAGE: http://www.comp.nus.edu.sg/~ipng/
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References:  10
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