Negative consumer value and loss leading

Caprice, Stéphane and Shekhar, Shiva (2017) Negative consumer value and loss leading. TSE Working Paper, n. 17-835, Toulouse

[img]
Preview
Text
Download (313kB) | Preview
Official URL: http://tse-fr.eu/pub/31957

Abstract

Large retailers competing with smaller stores that carry a narrower range can exercise market power by pricing below cost for some of their products. Below-cost pricing arises as an exploitative device rather than a predatory device (e.g., Chen and Rey, 2012). Unlike standard textbook models, we show that positive consumer value is not required in these frameworks. Large retailers can sell products offering consumers a negative value. We use this insight to revisit some classic issues in vertical relations.

Item Type: Monograph (Working Paper)
Language: English
Date: August 2017
Place of Publication: Toulouse
Uncontrolled Keywords: Multi-product retailers, loss-leading, negative consumer value
JEL codes: L13 - Oligopoly and Other Imperfect Markets
L81 - Retail and Wholesale Trade; Warehousing; e-Commerce
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 16 Apr 2018 15:25
Last Modified: 16 Apr 2018 15:25
OAI ID: oai:tse-fr.eu:31957
URI: http://publications.ut-capitole.fr/id/eprint/25670

Actions (login required)

View Item View Item