• Corpus ID: 7888028

How Do Vertical Contracts Affect Product Availability? An Empirical Study of the Grocery Industry

  title={How Do Vertical Contracts Affect Product Availability? An Empirical Study of the Grocery Industry},
  author={Sylvia Hristakeva},
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… 

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