Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/18967 
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dc.contributor.authorRaff, Horsten
dc.contributor.authorSchmitt, Nicolasen
dc.date.accessioned2009-01-28T15:54:08Z-
dc.date.available2009-01-28T15:54:08Z-
dc.date.issued2005-
dc.identifier.urihttp://hdl.handle.net/10419/18967-
dc.description.abstractThis paper shows that a manufacturer may benefit from parallel trade. In addition to anintuitive condition about the effect of demand shocks, this occurs when competitive retailersmust order inventories before they know the realization of demand and for products whosesale value drops at the end of the demand period. For these types of products, letting retailerstrade unsold inventories generally results in larger orders placed with the manufacturer,higher manufacturer profit and higher consumer surplus. The model provides a simpleexplanation as to why the volume of parallel trade is now very large and accepted bymanufacturers for some products such as automobiles, clothes, toys, consumer electronics,musical recordings, cosmetics and perfumes.en
dc.language.isoengen
dc.publisher|aCenter for Economic Studies and ifo Institute (CESifo) |cMunichen
dc.relation.ispartofseries|aCESifo Working Paper |x1503en
dc.subject.jelF12en
dc.subject.ddc330en
dc.subject.keywordparallel tradeen
dc.subject.keyworddistributionen
dc.subject.stwKompensationsgeschäften
dc.subject.stwMonopolen
dc.subject.stwEinzelhandelen
dc.subject.stwInternationaler Wettbewerben
dc.subject.stwGewinnen
dc.subject.stwWohlfahrtseffekten
dc.subject.stwTheorieen
dc.titleWhy parallel trade may raise producers profits-
dc.typeWorking Paperen
dc.identifier.ppn500519692en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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