Naked Slotting Fees for Vertical Control of Multi-Product Retail Markets

Robert Innes () and Stephen Hamilton

No 201545, Working Papers from University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group

Abstract: Slotting fees are fixed charges paid by food manufacturers to retailers for access to the retail market. The practice is both increasingly common and increasingly controversial. This note shows how imperfectly competitive retailers and a monopolistic supplier of one good can use "naked" slotting fees – charges imposed on competitive suppliers of other goods – to extract rent in vertically integrated multi-good markets.

Keywords: Food Security and Poverty; Research and Development/Tech Change/Emerging Technologies; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 19
Date: 2004
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Journal Article: Naked slotting fees for vertical control of multi-product retail markets (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uwfswp:201545

DOI: 10.22004/ag.econ.201545

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