Slotting allowances are a relatively recent trend, particular to the retail food industry. These allowances are lump-sum, up-front transfer payments from manufacturer to retailer when the manufacturer launches a new product. The practice has attracted some scrutiny because of uncertainty about its purposes and consequences. We draw from the extant literature to identify factors that potentially...

Slotting allowances are lump-sum payments by manufacturers to retailers for stocking new products. The economic rationale for slotting allowances is controversial. Several theoretical arguments have been provided for the use of slotting allowances. Some are based on efficiency considerations: (1) efficient allocation of scarce retail shelf space; (2) equitable allocation of new product failure ...

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. While the literature to date has largely focused on the effect of the practice on retail prices, it is also clear that slotting allowances have the potential to alter product variety in the market equilib...

Slotting allowances, which are lump-sum transfers paid by food manufacturers to grocery retailers in return for various retail concessions, are becoming increasingly common in wholesale grocery markets. This article extends the literature on slotting allowances by considering two features that previously have been ignored: the role of food processors in determining these pricing arrangements, a...

Considerable controversy and debate surrounds the practice of slotting allowances, or fees, paid by manufacturers for obtaining the patronage of retailers. To date, regulators have yet to agree on public policy toward these practices: at least one federal antitrust agency suggests that slotting fees may be competitive, another has conducted investigations into these practices, and still another...

Slotting allowances are fees paid by manufacturers to get access to retailers’ shelf space. Both in the USA and Europe, the use of slotting allowances has attracted attention in the general press as well as among policy makers and economists. One school of thought claims that slotting allowances are efficiency enhancing, while another school of thought maintains that slotting allowances are use...

With the increase in new product introductions in consumer packaged goods categories, supermarkets are reluctant to accept new products. Therefore, it is very important for manufacturers to convince retailers of the high-demand potential of their products. We study how a high-demand manufacturer can use advertising, slotting allowances, andwholesale prices to signal its high demand to retailers...

In retail markets, slotting allowances have become a common practice, i.e. manufacturers pay lump-sum fees to retailers for initially stocking their products. However, the e ect of these payments on channel e ciency is still discussed controversially among practitioners and researchers. Due to severe data restrictions, substantial empirical research is rare, with the notable exceptions of Rao a...

Slotting fees -fixed charges paid by food manufacturers to retailers for access to the retail market -are both increasingly common and increasingly controversial. This note shows how imperfectly competitive retailers and a monopolistic supplier of one good can use "naked" slotting fees -charges imposed on competitive suppliers of other goods -to achieve a vertically integrated multi-good monopoly.

Slotting fees are fixed charges paid by food manufacturers to retailers for access to the retail market. This note considers this practice in the context of multi-product markets with imperfectly competitive retailers, a monopoly supplier of one good, and competitive suppliers of other goods. We show how the monopolist and the retailers can use bnakedQ slotting fees–charges imposed on the suppl...