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

Author

Listed:
  • 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.

Suggested Citation

  • Jürgen-Peter Kretschmer & Oliver Budzinski, 2011. "Advertised meeting-the-competition clauses: collusion instead of price discrimination," Economics Bulletin, AccessEcon, vol. 31(4), pages 3153-3157.
    • Handle: RePEc:ebl:ecbull:eb-11-00704
    as

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    References listed on IDEAS

    as
    1. Png, I P L & Hirshleifer, D, 1987. "Price Discrimination through Offers to Match Price," The Journal of Business, University of Chicago Press, vol. 60(3), pages 365-383, July.
    2. Logan, John W. & Lutter, Randall W., 1989. "Guaranteed lowest prices: do they facilitate collusion?," Economics Letters, Elsevier, vol. 31(2), pages 189-192, December.
    Full references (including those not matched with items on IDEAS)

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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 Sociology, Environmental and Business Economics.
    2. Budzinski Oliver & Köhler Karoline Henrike, 2015. "Is Amazon The Next Google?," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 66(1), pages 263-288, January.
    3. Trost, Michael, 2021. "The collusive efficacy of competition clauses in Bertrand Markets with capacity-constrained retailers," Hohenheim Discussion Papers in Business, Economics and Social Sciences 04-2021, University of Hohenheim, Faculty of Business, Economics and Social Sciences.

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    More about this item

    Keywords

    meeting-the-competition clauses; advertising; price discrimination; competition; collusion;
    All these keywords.

    JEL classification:

    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising

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