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Analyzing a sequential bargaining framework with one retailer and two suppliers of substitutable goods, we show that slotting fees may emerge as a result of a rent-shifting mechanism when consumer shopping costs are taken into account. If consumers economize on their shopping costs by bundling...
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and suppliers of their product assortment. However, retailers and manufacturers have to consider the risk of potential … reactions when customers are faced with a reduced or modified assortment and thus, different choice. In this paper, two studies …
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