Advertised Meeting-the-Competition Clauses: Collusion Instead of Price Discrimination

Oliver Budzinski and Jürgen-Peter Kretschmer ()
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Jürgen-Peter Kretschmer: Economic Policy Unit, Philipps-University of Marburg, Germany

No 99/10, Working Papers from University of Southern Denmark, Department of Sociology, Environmental and Business Economics

Abstract: Pricing strategies may include the advertising of meeting-the-competition clauses (MCCs). We show in a specific spatial model scenario with differently informed consumers that MCCs primarily serve as a device to facilitate collu-sion instead of allowing for price discrimination between these consumers.

Keywords: Meeting-the-competition clauses; advertising; price discrimination; competi-tion; collusion (search for similar items in EconPapers)
JEL-codes: D21 L11 L40 M21 M37 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2010-02
New Economics Papers: this item is included in nep-com and nep-mkt
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Citations: View citations in EconPapers (1)

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Journal Article: Advertised meeting-the-competition clauses: collusion instead of price discrimination (2011)
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