@techreport{Raff2005parallel,
abstract = {This paper shows that a manufacturer may benefit from parallel trade. In addition to an
intuitive condition about the effect of demand shocks, this occurs when competitive retailers
must order inventories before they know the realization of demand and for products whose
sale value drops at the end of the demand period. For these types of products, letting retailers
trade unsold inventories generally results in larger orders placed with the manufacturer,
higher manufacturer profit and higher consumer surplus. The model provides a simple
explanation as to why the volume of parallel trade is now very large and accepted by
manufacturers for some products such as automobiles, clothes, toys, consumer electronics,
musical recordings, cosmetics and perfumes.},
author = {Horst Raff and Nicolas Schmitt},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F12; 330; parallel trade; distribution; Kompensationsgesch\"{a}ft; Monopol; Einzelhandel; Internationaler Wettbewerb; Gewinn; Wohlfahrtseffekt; Theorie},
language = {eng},
number = {1503},
title = {Why parallel trade may raise producers profits},
type = {CESifo working papers},
url = {http://hdl.handle.net/10419/18967},
year = {2005}
}
