Slotting allowances and retail product variety under oligopoly

C-Tier
Journal: Economics Letters
Year: 2017
Volume: 158
Issue: C
Pages: 34-36

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Slotting fees are lump-sum charges paid by manufacturers to retailers for shelf space. In this letter we examine the strategic effect of slotting allowances on product variety. In a spatial model where consumers each have unit demand for their preferred product variant and retailers jointly select prices and product variety, we show that variety is (1) under-provided without slotting contracts and (2) efficiently supplied under equilibrium slotting fees.

Technical Details

RePEc Handle
repec:eee:ecolet:v:158:y:2017:i:c:p:34-36
Journal Field
General
Author Count
2
Added to Database
2026-01-25