@techreport{vonSchlippenbach2008Complementarities,
abstract = {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.},
address = {Berlin},
author = {Vanessa von Schlippenbach},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {L22; L42; 330; Complementarities; Retailing; Below-Cost Pricing; Einzelhandelspreispolitik; Niedrigpreisstrategie; Verdr\"{a}ngungswettbewerb; Lieferanten-Kunden-Beziehung; Konsumg\"{u}terindustrie; Produktqualit\"{a}t; Verhandlungen; Wohlfahrtseffekt; Preisaufsicht; Theorie},
language = {eng},
number = {788},
publisher = {Deutsches Institut f\"{u}r Wirtschaftsforschung (DIW)},
title = {Complementarities, below-cost pricing, and welfare losses},
type = {Discussion papers // German Institute for Economic Research},
url = {http://hdl.handle.net/10419/27312},
year = {2008}
}
