RT Monograph
SR 00
A1 Bonnet, Céline
A1 Dubois, Pierre
T1 Identifying Two Part Tariff Contracts with Buyer Power: Empirical Estimation on Food Retailing
YR 2015
FD 2015-05
VO 15-575
SP 50
K1 vertical contracts
K1 two part tariff
K1 buyer power
K1 retailers
K1 differentiated products
AB Using typical demand data on differentiated products markets, we show how to identify and estimate vertical contract terms modelling explicitly the buyer power of downstream firms facing two part tariff offered by the upstream firms. We consider manufacturers and retailers relationships with two part tariff with or without resale price maintenance and allow retailers to have a buyer power determined by the horizontal competition of manufacturers. Our contribution allows to recover price-cost margins at the upstream and downstream levels as well as fixed fees of two-part tariff contracts using the industry structure and estimates of demand parameters. Empirical evidence on the market for bottles of water in France shows that two part tariff contracts are used without resale price maintenance and that the buyer power of supermarket chains is endogenous to the structure of manufacturers competition. We are able to estimate total fixed fees and profits across manufacturers and retailers.
T2 TSE Working Paper
PB TSE Working Paper
PP Toulouse
AV Published
LK https://publications.ut-capitole.fr/id/eprint/16904/
UL http://tse-fr.eu/pub/29303