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dc.contributor.authorRaff, Horsten_US
dc.contributor.authorSchmitt, Nicolasen_US
dc.date.accessioned2009-01-28T15:54:08Z-
dc.date.available2009-01-28T15:54:08Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/18967-
dc.description.abstractThis 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.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesCESifo working papers 1503en_US
dc.subject.jelF12en_US
dc.subject.ddc330en_US
dc.subject.keywordparallel tradeen_US
dc.subject.keyworddistributionen_US
dc.subject.stwKompensationsgeschäften_US
dc.subject.stwMonopolen_US
dc.subject.stwEinzelhandelen_US
dc.subject.stwInternationaler Wettbewerben_US
dc.subject.stwGewinnen_US
dc.subject.stwWohlfahrtseffekten_US
dc.subject.stwTheorieen_US
dc.titleWhy parallel trade may raise producers profitsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn500519692en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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