Advertised Meeting-the-Competition Clauses: Collusion Instead of Price Discrimination

5 Pages Posted: 19 Mar 2009

See all articles by Jürgen-Peter Kretschmer

Jürgen-Peter Kretschmer

Philipps University Marburg - Department of Business Administration and Economics

Oliver Budzinski

Ilmenau University of Technology

Date Written: March 18, 2009

Abstract

Pricing strategies may include the advertising of meeting-the-competition clauses (MCCs). We show in a specific spatial model scenario with differently informed consumers that MCCs primarily serve as a device to facilitate collusion instead of allowing for price discrimination between these consumers.

Keywords: meeting-the-competition clauses, advertising, price discrimination, competition, collusion

JEL Classification: M21, M37, L40, L11, D21

Suggested Citation

Kretschmer, Jürgen-Peter and Budzinski, Oliver, Advertised Meeting-the-Competition Clauses: Collusion Instead of Price Discrimination (March 18, 2009). Available at SSRN: https://ssrn.com/abstract=1364208 or http://dx.doi.org/10.2139/ssrn.1364208

Jürgen-Peter Kretschmer (Contact Author)

Philipps University Marburg - Department of Business Administration and Economics ( email )

Am Plan 2
Marburg, 35032
Germany

Oliver Budzinski

Ilmenau University of Technology ( email )

Ilmenau, D-98684
Germany

HOME PAGE: http://www.tu-ilmenau.de/wth

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