Fiche du document
3 septembre 2024
- ISIDORE Id: 10670/1.4af636...
- hal: hal-04758824
info:eu-repo/semantics/OpenAccess
Mots-clés
Vertical restraints Loss leading Promotional allowances Below-cost Pricing L - Industrial Organization/L.L1 - Market Structure, Firm Strategy, and Market Performance/L.L1.L11 - Production, Pricing, and Market Structure • Size Distribution of Firms L - Industrial Organization/L.L4 - Antitrust Issues and Policies/L.L4.L42 - Vertical Restraints • Resale Price Maintenance • Quantity Discounts L - Industrial Organization/L.L8 - Industry Studies: Services/L.L8.L81 - Retail and Wholesale Trade • e-CommerceSujets proches
Price policy, Industrial Retail pricing Price policyCiter ce document
David Martimort et al., « Promotional Allowances: Loss Leading as an Incentive Device », HAL SHS (Sciences de l’Homme et de la Société), ID : 10670/1.4af636...
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Résumé
A retailer may boost demand for a manufacturer’s product through unobservable promotional efforts. Fixed fees cannot be used to freely allocate profit within the vertical structure. When manufacturers have market power, the equilibrium wholesale contract features a retail price below cost together with a rebate for incremental units bought by the retailer when effort has succeeded in boosting sales. Loss leading emerges as an incentive device in such an incomplete contracting scenario. A ban on below-cost pricing leads to a higher retail price and a lower promotional effort.
