A ban on pricing below cost was implemented under the 1987 Groceries Order based on the premise that loss leading used in multi-product retail pricing distorts competition and exploits consumers in the short run, while driving a more concentrated structure and reducing welfare in the long run. Loss leading is examined for multi-product retailers selling in imperfectly competitive market niches ...

one of the ways of selling products is “direct selling”. the companies which use this method sell their products directly to end users just by their distributors’ intermediation. in this method, distributors retail sell the products out of a fixed commercial location. harmful effect of loading unsold products with distributors had legislators make companies buy-back those products. briefly, we ...