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 collusion instead of allowing for price discrimination between these consumers.

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Year of publication:	2011
Authors:	Kretschmer, Jürgen-Peter ; Budzinski, Oliver
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 31.2011, 4, p. 3153-3157
Publisher:	AccessEcon
Subject:	meeting-the-competition clauses \| advertising \| price discrimination \| competition \| collusion

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	M2 - Business Economics ; M3 - Marketing and Advertising
Source:	RePEc - Research Papers in Economics

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