The Rebate Effect: An Attempt to Measure the Effects of Loyalty Discounts on the Competitive Process

27 Pages Posted: 18 Feb 2021

See all articles by Pedro Rencoret

Pedro Rencoret

Pontificia Universidad Católica de Chile

Date Written: January 24, 2020

Abstract

The discussion regarding what should be the proper legal treatment for loyalty discounts (also
known as “fidelity discounts” or “loyalty rebates”) in antitrust law is characterized by a strong
lack of consensus among enforcement authorities and scholars, being no agreement as to whether
it entails a procompetitive business practice or an illegal means of distorting competition. This
paper aims making a contribution to the debate by offering a modest empirical analysis of the
decision that the Competition Court of Chile (Tribunal de Defensa de la Libre Competencia or
“Competition Court”) issued in the case Canada Chemicals v. Compañía Chilena de Fósforos (the
“matches case”), which found the loyalty discounts anticompetitive.

Keywords: Antitrust, fidelity discounts, loyalty discounts, rebates, competition, libre competencia, Chile, matches, exclusionary

JEL Classification: K21, L42

Suggested Citation

Rencoret, Pedro, The Rebate Effect: An Attempt to Measure the Effects of Loyalty Discounts on the Competitive Process (January 24, 2020). Available at SSRN: https://ssrn.com/abstract=3757807 or http://dx.doi.org/10.2139/ssrn.3757807

Pedro Rencoret (Contact Author)

Pontificia Universidad Católica de Chile ( email )

Av Libertador General Bernardo O'Higgins 340
Santiago, Región Metropolitana 8331150
Chile

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
86
Abstract Views
291
Rank
543,065
PlumX Metrics