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

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.

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Year of publication:	2010-02
Authors:	Budzinski, Oliver ; Kretschmer, Jürgen-Peter
Institutions:	Institut for Miljø og Erhvervsøkonomi, Syddansk Universitet
Subject:	Meeting-the-competition clauses \| advertising \| price discrimination \| competi-tion \| collusion

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 99/10 19 pages
Classification:	M21 - Business Economics ; M37 - Advertising ; L40 - Antitrust Policy. General ; L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms ; D21 - Firm Behavior
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008621817