EconStor >
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin >
DIW-Diskussionspapiere >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/27312
  
Title:Complementarities, below-cost pricing, and welfare losses PDF Logo
Authors:von Schlippenbach, Vanessa
Issue Date:2008
Series/Report no.:Discussion papers // German Institute for Economic Research 788
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.
Subjects:Complementarities
Retailing
Below-Cost Pricing
JEL:L22
L42
Document Type:Working Paper
Appears in Collections:DIW-Diskussionspapiere
Publikationen von Forscherinnen und Forschern des DIW

Files in This Item:
File Description SizeFormat
571528775.PDF192.34 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/27312

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.