Slotting Allowances and Scarce Shelf Space
Title | Slotting Allowances and Scarce Shelf Space PDF eBook |
Author | Leslie M. Marx |
Publisher | |
Pages | 0 |
Release | 2010 |
Genre | |
ISBN |
Slotting allowances are payments made by manufacturers to obtain retail shelf space. They are widespread in the grocery industry and a concern to antitrust authorities. A popular view is that slotting allowances arise because there are more products than retailers can profitably carry given their shelf space. We show that the causality can also go the other way: the scarcity of shelf space may in part be due to the feasibility of slotting allowances. It follows that slotting allowances can be anticompetitive even if they have no effect on retail prices.
Slotting Allowances
Title | Slotting Allowances PDF eBook |
Author | K. Sudhir |
Publisher | |
Pages | 37 |
Release | 2004 |
Genre | |
ISBN |
Slotting allowances are lump-sum payments by manufacturers for stocking new products. The economic rationale for slotting allowances is controversial. Several theoretical arguments have been provided for the use of slotting allowances. Some are based on efficiency considerations: (1) efficient allocation of scarce retail shelf space, (2) equitable allocation of new product failure risk between manufacturers and retailers and (3) signaling device for manufacturers to communicate private information about potential success to the retailer. Others have argued that slotting allowances are an anti-competitive device that (1) manufacturers use to reduce retail competition (2) large manufacturers use to exclude small manufacturers. Others suggest that slotting allowances are the result of retailers exercising power. However, empirical research has been virtually non-existent due to the difficulty in obtaining data about these transactions.Using data on all new products that were offered to one retailer for a period of six months, we empirically investigate support for the alternative rationales for slotting allowances. Our analysis indicates that broadly there is more support for the efficiency theories than for the anti-competitive theories. We find evidence that slotting allowances (1) serve to efficiently allocate scarce retail shelf space; (2) help balance the risk of new product failure between manufacturers and retailers; (3) help only large manufacturers communicate their private information about potential success of new products and (4) serve to widen retail distribution for manufacturers by mitigating retail competition.
The Use of Slotting Allowances in the Retail Grocery Industry
Title | The Use of Slotting Allowances in the Retail Grocery Industry PDF eBook |
Author | |
Publisher | DIANE Publishing |
Pages | 119 |
Release | |
Genre | |
ISBN | 1428952721 |
Issues in Specialized Economic Research and Application: 2011 Edition
Title | Issues in Specialized Economic Research and Application: 2011 Edition PDF eBook |
Author | |
Publisher | ScholarlyEditions |
Pages | 221 |
Release | 2012-01-09 |
Genre | Business & Economics |
ISBN | 1464967474 |
Issues in Specialized Economic Research and Application: 2011 Edition is a ScholarlyEditions™ eBook that delivers timely, authoritative, and comprehensive information about Specialized Economic Research and Application. The editors have built Issues in Specialized Economic Research and Application: 2011 Edition on the vast information databases of ScholarlyNews.™ You can expect the information about Specialized Economic Research and Application in this eBook to be deeper than what you can access anywhere else, as well as consistently reliable, authoritative, informed, and relevant. The content of Issues in Specialized Economic Research and Application: 2011 Edition has been produced by the world’s leading scientists, engineers, analysts, research institutions, and companies. All of the content is from peer-reviewed sources, and all of it is written, assembled, and edited by the editors at ScholarlyEditions™ and available exclusively from us. You now have a source you can cite with authority, confidence, and credibility. More information is available at http://www.ScholarlyEditions.com/.
Slotting
Title | Slotting PDF eBook |
Author | United States. Congress. Senate. Committee on Small Business |
Publisher | |
Pages | 536 |
Release | 2000 |
Genre | Business & Economics |
ISBN |
Handbook of Research on Distribution Channels
Title | Handbook of Research on Distribution Channels PDF eBook |
Author | Charles A. Ingene |
Publisher | Edward Elgar Publishing |
Pages | 599 |
Release | 2019 |
Genre | Business & Economics |
ISBN | 0857938606 |
Distribution channels are the most complex element of the marketing mix to fully grasp and to profitably manage. In this Handbook the authors present cutting-edge research on channel management and design from analytical, conceptual, and empirical perspectives. The breadth of this Handbook makes it appropriate for use in a doctoral course on distribution channels, or as a knowledge-broadening resource for faculty and researchers who wish to understand types of channels research that are outside the scope of their own approach to distribution.
A Modern Guide to Food Economics
Title | A Modern Guide to Food Economics PDF eBook |
Author | Roosen, Jutta |
Publisher | Edward Elgar Publishing |
Pages | 384 |
Release | 2022-03-17 |
Genre | Social Science |
ISBN | 1800372051 |
This Modern Guide provides detailed theoretical and empirical insights into key areas of research in food economics. It takes a forward-looking perspective on how different actors in the food system shape the sustainability of food production, distribution, and consumption, as well as on major challenges to efficient and inclusive food systems.