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Caprice, Stéphane
and Shekhar, Shiva
(2017)
Negative consumer value and loss leading.
TSE Working Paper, n. 17-835, Toulouse
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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 Classification: | 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: | 29 Jun 2021 09:29 |
| OAI Identifier: | oai:tse-fr.eu:31957 |
| URI: | https://publications.ut-capitole.fr/id/eprint/25670 |
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