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Advertised meeting-the-competition clauses: collusion instead of price discrimination

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Author Info

  • Jürgen-Peter Kretschmer

    ()
    (Bundeskartellamt)

  • Oliver Budzinski

    ()
    (University of Southern Denmark)

Abstract

Pricing strategies may include the advertising of meeting-the-competition clauses (MCCs). We show in a specific spatial model scenario with differently informed consumers that MCCs primarily serve as a device to facilitate collusion instead of allowing for price discrimination between these consumers.

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File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I4-P285.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 31 (2011)
Issue (Month): 4 ()
Pages: 3153-3157

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Handle: RePEc:ebl:ecbull:eb-11-00704

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Keywords: meeting-the-competition clauses; advertising; price discrimination; competition; collusion;

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Cited by:
  1. Oliver Budzinski, 2009. "Modern Industrial Economics and Competition Policy: Open Problems and Possible Limits," Working Papers 93/09, University of Southern Denmark, Department of Environmental and Business Economics.

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