Sloev, Igor (2007): Market Share Discounts and Investment Incentives.
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The paper investigates pro- and anticompetitive e¤ects of the use of market share discounts (MSD�s). While MSD�s can be used for exploiting a dominant position and may lead to a welfare reduction, MSD�s also can serve as an e¢ cient device for the creation of incentives. Particularly, if a �nal demand for an upstream manufacturer�s good depends on a promotional e¤ort of a retailer, the manufacturer can e¤ectively use MSD�s to induce an optimal level of the retailer�s e¤ort. Moreover, it is possible that MSD�s have a positive impact both on the consumers�surplus and the total industry pro�ts. Thus the use of MSD�s should not be treated as an anticompetitive practice a priori, but rather it has to be judged on a case-by-case basis.
|Item Type:||MPRA Paper|
|Original Title:||Market Share Discounts and Investment Incentives|
|Keywords:||market-share discounts, vertical restraints, incentives|
|Subjects:||L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification, and Scope
L - Industrial Organization > L4 - Antitrust Issues and Policies > L42 - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L22 - Firm Organization and Market Structure
|Depositing User:||Igor Sloev|
|Date Deposited:||11. Mar 2009 16:40|
|Last Modified:||21. Feb 2013 12:17|
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