Empirical Evidence on Conditional Pricing Practices

Bogdan Genchev and Julie Mortimer

No 22313, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Conditional pricing practices allow the terms of sale between a producer and a downstream distributor to vary based on 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. This paper reviews empirical evidence on these arrangements.

JEL-codes: K0 K2 K20 K21 L0 L4 L42 (search for similar items in EconPapers)
Date: 2016-06
New Economics Papers: this item is included in nep-bec, nep-com, nep-law and nep-mkt
Note: IO
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Working Paper: Empirical Evidence on Conditional Pricing Practices (2016)
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