Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/21995 
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dc.contributor.authorRaff, Horsten
dc.contributor.authorSchmitt, Nicolasen
dc.date.accessioned2009-01-29T14:13:16Z-
dc.date.available2009-01-29T14:13:16Z-
dc.date.issued2005-
dc.identifier.urihttp://hdl.handle.net/10419/21995-
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
dc.language.isoengen
dc.publisher|aKiel University, Department of Economics |cKielen
dc.relation.ispartofseries|aEconomics Working Paper |x2005-07en
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.ppn486938999en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:cauewp:2990en

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