Arbeitspapier
Complementarities, below-cost pricing, and welfare losses
We analyze below-cost pricing in retail markets and examine its impact on social welfare as well as on suppliers' incentives to invest in quality. Considering negotiations about a linear wholesale price between the retailer and her suppliers, we find that below-cost pricing aggravates the double marginalization problem and causes welfare losses compared to a regime where below-cost pricing is banned. Furthermore, suppliers have stronger incentives to invest in high quality products if a ban of below-cost pricing is enforced.
- Sprache
-
Englisch
- Erschienen in
-
Series: DIW Discussion Papers ; No. 788
- Klassifikation
-
Wirtschaft
Firm Organization and Market Structure
Vertical Restraints; Resale Price Maintenance; Quantity Discounts
- Thema
-
Complementarities
Retailing
Below-Cost Pricing
Einzelhandelspreispolitik
Niedrigpreisstrategie
Verdrängungswettbewerb
Lieferanten-Kunden-Beziehung
Konsumgüterindustrie
Produktqualität
Verhandlungen
Wohlfahrtseffekt
Preisaufsicht
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
von Schlippenbach, Vanessa
- Ereignis
-
Veröffentlichung
- (wer)
-
Deutsches Institut für Wirtschaftsforschung (DIW)
- (wo)
-
Berlin
- (wann)
-
2008
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- von Schlippenbach, Vanessa
- Deutsches Institut für Wirtschaftsforschung (DIW)
Entstanden
- 2008
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