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- W1544803977 abstract "We analyze below-cost pricing in retail markets and examine its impact on social welfare as well as on suppliers' incentives to invest in quality. Considering negotiations about a linear wholesale price between the retailer and her suppliers, we find that below-cost pricing aggravates the double marginalization problem and causes welfare losses compared to a regime where below-cost pricing is banned. Furthermore, suppliers have stronger incentives to invest in high quality products if a ban of below-cost pricing is enforced." @default.
- W1544803977 created "2016-06-24" @default.
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- W1544803977 date "2008-01-01" @default.
- W1544803977 modified "2023-10-18" @default.
- W1544803977 title "Complementarities, Below-Cost Pricing, and Welfare Losses" @default.
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- W1544803977 doi "https://doi.org/10.2139/ssrn.1132756" @default.
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