Empirical Evidence on Conditional Pricing Practices

Bogdan Genchev () and Julie Mortimer
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Bogdan Genchev: Boston College

No 908, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: Conditional pricing practices allow the terms of sale between a producer and a downstream distributor to vary with the ability of the downstream firm to meet a set of conditions put forward by the producer. The conditions may require a downstream firm to accept minimum quantities or multiple products, to adhere to minimum market-share requirements, or even to deal exclusively with one producer. The form of payment from the producer to the downstream firm may take the form of a rebate, marketing support, or simply the willingness to supply inventory. The use of conditional pricing practices is widespread throughout many industries, and the variety of contractual forms used in these arrangements is nearly as extensive as the number of contracts.

Keywords: conditional pricing; terms of sale; downstream firm (search for similar items in EconPapers)
JEL-codes: K11 K21 L4 L42 (search for similar items in EconPapers)
Date: 2016-02-15
New Economics Papers: this item is included in nep-bec, nep-com, nep-cta and nep-mkt
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Published, Anti-trust Law Journal, Vol 81, No 2 (2017): 343-370

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Related works:
Working Paper: Empirical Evidence on Conditional Pricing Practices (2016)
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