How Do Vertical Contracts Affect Product Availability? An Empirical Study of the Grocery Industry
@inproceedings{Hristakeva2016HowDV, title={How Do Vertical Contracts Affect Product Availability? An Empirical Study of the Grocery Industry}, author={Sylvia Hristakeva}, year={2016} }
Producers frequently provide financial incentives to retailers in order to gain distribution for their products. These payments often take the form of vendor allowances: lump-sum transfers to retailers that do not directly depend on volume. To quantify the size of vendor allowances and their effects on product assortments and welfare, I develop a framework to identify lump-sum transfers using only data on retail prices, sales, and assortments. Without making any assumptions about producer and…
Figures and Tables from this paper
4 Citations
Product Variety in the U.S. Yogurt Industry
- Economics
- 2017
The products offered in an industry determine the profits of firms and consumer welfare. In this paper, I estimate a model of product entry and exit in the U.S. yogurt industry from 2001-2011 using…
A Review of Choice Modeling in the Marketing-Operations Management Interface
- Business
- 2017
The operations management discipline has made substantial progress developing analytical models to help firms make tactical and strategic decisions (e.g., inventory control, assortment planning). The…
Common Ownership and Competition in the Ready-to-Eat Cereal Industry
- EconomicsSSRN Electronic Journal
- 2021
Models of firm conduct are the cornerstone of both theoretical and empirical work in industrial organization. A recent contribution (Berry and Haile, 2014) has suggested the use of exclusion…
New Product Introduction and Slotting Fees*
- Business, Economics
- 2017
The availability of a new product in a store creates, through word-of-mouth ad- vertising, an informative spillover that may go beyond the store itself. We show that, because of this spillover, each…
References
SHOWING 1-10 OF 44 REFERENCES
Inference on Vertical Contracts between Manufacturers and Retailers Allowing for Non Linear Pricing and Resale Price Maintenance
- Economics, Business
- 2008
A methodology is presented allowing manufacturers and retailers vertical contracting in their pricing strategies on a differentiated product market to be introduced. This contribution allows…
Vertical relationships between Manufacturers and Retailers: Inference with Limited Data
- Economics, Business
- 2007
In this paper, different models of vertical relationships between manufacturersand retailers in the supermarket industry are compared. Demand estimates areused to compute price-cost margins for…
Identifying Two Part Tariff Contracts with Buyer Power: Empirical Estimation on Food Retailing
- Economics, Business
- 2015
Using typical demand data on differentiated products markets, we show how to identify and estimate vertical contract terms modelling explicitly the buyer power of downstream firms facing two part…
The Role of Slotting Fees in the Coordination of Assortment Decisions
- Business
- 2009
Large numbers of new products introduced annually by manufacturers may strain the relationship between retailers and manufacturers regarding assortments carried by retailers. For example, many…
Research Note-The Effects of Costs and Competition on Slotting Allowances
- Economics, Business
- 2007
We consider the optimal two-part tariff contract between a manufacturer and a retailer. We show that retail competition in the presence of either fixed costs or bargaining power may lead to slotting…
Slotting Allowances and Manufacturers' Retail Sales Effort
- Business, EconomicsSSRN Electronic Journal
- 2008
A manufacturer’s incentives to undertake noncontractible investments depend on the profit margin on her sales to the retailer, and slotting allowances can facilitate such incentives by increasing…
Assessing Supermarket Product-Line Decisions: The Impact of Slotting Fees
- Business
- 2004
In this paper, I estimate a structural demand model for a product category in a supermarket chain. I use the model to infer manufacturers' side payments to obtain shelf access in the supermarket and…
Slotting Allowances and New Product Introductions
- Business, Economics
- 1997
Slotting allowances---lump sum transfers from manufacturers to retailers for carrying new products---have become an important part of promotional agreements over the past decade. Hardly known before…
Structural Analysis of Manufacturer Pricing in the Presence of a Strategic Retailer
- Economics, Business
- 2001
Consumer goods manufacturers usually sell their brands to consumers through common independent retailers. Theoretical research on such channel structures has analyzed the optimal behavior of channel…
Understanding Retail Assortments In Competitive Markets 1
- Business
- 2008
Assortment planning, where a retailer decides which products to place on their store shelves, is one of the most fundamental decisions in retailing. Retail assortments are important drivers in…