search query: @indexterm OPPORTUNITY COSTS / total: 47
reference: 31 / 47
Author: | Shaffer, G. |
Title: | Capturing strategic rent: full-line forcing, brand discounts, aggregate rebates, and maximum resale price maintenance |
Journal: | Journal of Industrial Economics
1991 : SEP, VOL. 39:5, p. 557-575 |
Index terms: | RETAILING MARKETING STRATEGY RETAIL PRICING OPPORTUNITY COSTS PROFIT CARTELS |
Language: | eng |
Abstract: | The implications of a retailer's shelf space stocking decisions on the optimal marketing strategy of an upstream multi-product monopolist are examined. When the retailer's opportunity cost of shelf space is known, full-line forcing , brand discounts, and maximum resale price maintenance are sufficient to achieve the monopolist manufacturer's first best profit. When these strategies are adopted, the retailer's profit is reduced to the scarcity rents obtainable on her shelf space. When the retailer's opportunity cost of shelf space is unknown, the use of aggregate rebates can act as a screening device to maximize channel profit. A theoretical basis for a manufacturer cartel's use of resale price maintenance is developed. |
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