This article employs a Tobit model to examine whether the market power of manufacturers and retailers influence trade promotion decisions in the US food sector. Greater retailer market power increases allocation of funds to off-invoice trade promotions. We find evidence that the balance of power...

Although many have proposed theories explaining trade promotion (TP) behavior by manufacturers, lack of data has prevented empirical assessment. We employ survey data to explore the effect of manufacturer and retailer bargaining power on the allocation of TPs in the U.S. food sector. The survey...

Although many have proposed theories explaining trade promotion (TP) behavior by manufacturers, lack of data has prevented empirical assessment. We employ survey data to explore the effect of manufacturer and retailer bargaining power on the allocation of TPs in the U.S. food sector. The survey...