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Slotting Fees for Organic Retail Products: Evidence from a Survey of U.S. Food Retailers AgEcon
Marasteanu, I. Julia; Jaenicke, Edward C.; Dimitri, Carolyn.
This paper investigates the prevalence of slotting fees in organic packaged and prepared products, and identifies the factors that influence the relative size of slotting fees. Based on a 2009 survey of U.S. food retailers, we find that 31 percent of surveyed retailers accept slotting fees for organic packaged and prepared products. Previous literature on slotting fees provides arguments for two rationales, one focused on the role slotting fees play in establishing an efficient allocation of shelf space for new products and the other focused on how slotting fees can be used strategically to price discriminate or otherwise increase rents to parties with more bargaining power. Using an ordered logit regression of the relative magnitude of slotting fees on...
Tipo: Conference Paper or Presentation Palavras-chave: Organic; Slotting fees; Food retailers; Ordered logit; Agribusiness; Agricultural and Food Policy.
Ano: 2011 URL: http://purl.umn.edu/103467
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Slotting Allowances and Retail Product Variety under Oligopoly AgEcon
Innes, Robert; Hamilton, Stephen F..
Slotting fees are fixed charges paid by food manufacturers to retailers for access to the retail market. The role of the practice and its effects on market efficiency are highly controversial. To date, the literature has focused on the effect of the practice on retail prices; however, slotting allowances also have the potential to alter the range of products available to consumers. Our analysis reveals that the strategic use of slotting allowances by oligopoly firms leads to a superior allocation of product variety among retailers. Indeed, absent price effects, we show that slotting allowances lead to the socially optimal provision of product variety.
Tipo: Conference Paper or Presentation Palavras-chave: Slotting fees; Vertical contracts; Monopolization.; Agribusiness; Agricultural and Food Policy; Industrial Organization; Marketing; L13; L14; L42; D43.
Ano: 2010 URL: http://purl.umn.edu/60948
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U.S. Fresh Fruit and Vegetable Marketing: Emerging Trade Practices, Trends, and Issues AgEcon
Calvin, Linda; Cook, Roberta L.; Denbaly, Mark; Dimitri, Carolyn; Glaser, Lewrene K.; Handy, Charles R.; Jekanowski, Mark D.; Kaufman, Phillip R.; Krissoff, Barry; Thompson, Gary D.; Thornsbury, Suzanne.
In the past year, trade practices between fresh produce shippers and food retailers gained national attention. Shippers are concerned that recent retail consolidation has led to market power and the growing incidence of fees and services. Retailers argue that these new trade practices reflect their costs of doing business and the demands of consumers. Trade practices include fees such as volume discounts and slotting fees, as well as services like automatic inventory replenishment, special packaging, and requirements for third-party food safety certification. Trade practices also refer to the overall structure of a transaction-for example, long-term relationships or contracts versus daily sales with no continuing commitment. This study compares trade...
Tipo: Report Palavras-chave: Produce; Fresh fruit and vegetables; Fresh-cut produce; Trade practices; Fees and services; Slotting fees; Retail consolidation; Produce shipper consolidation; Crop Production/Industries; Marketing.
Ano: 2001 URL: http://purl.umn.edu/33915
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