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Empirical Evidence on Conditional Pricing Practices

Listed author(s):
  • Bogdan Genchev

    ()

    (Boston College)

  • Julie Holland Mortimer

    ()

    (Boston College)

Conditional pricing practices allow the terms of sale between a producer and a downstream distributor to vary with the ability of the downstream firm to meet a set of conditions put forward by the producer. The conditions may require a downstream firm to accept minimum quantities or multiple products, to adhere to minimum market-share requirements, or even to deal exclusively with one producer. The form of payment from the producer to the downstream firm may take the form of a rebate, marketing support, or simply the willingness to supply inventory. The use of conditional pricing practices is widespread throughout many industries, and the variety of contractual forms used in these arrangements is nearly as extensive as the number of contracts.

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Paper provided by Boston College Department of Economics in its series Boston College Working Papers in Economics with number 908.

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Date of creation: 15 Feb 2016
Handle: RePEc:boc:bocoec:908
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