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Loyalty Rebates: An Assessment of Competition Concerns and a Proposed Structured Rule of Reason

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  • David Spector

    (PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract

Like most pricing practices, loyalty rebates may benefit or harm consumers according to the circumstances. This paper reviews the pro-competitive and anticompetitive motives for loyalty rebates. This paper concludes by proposing a structured rule of reason for the antitrust handling of loyalty rebates cases.

Suggested Citation

  • David Spector, 2005. "Loyalty Rebates: An Assessment of Competition Concerns and a Proposed Structured Rule of Reason," Post-Print halshs-00754113, HAL.
    • Handle: RePEc:hal:journl:halshs-00754113
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    Citations

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    Cited by:

    1. Elhauge, Einer & Wickelgren, Abraham L., 2015. "Robust exclusion and market division through loyalty discounts," International Journal of Industrial Organization, Elsevier, vol. 43(C), pages 111-121.
    2. Nicholas Economides, 2014. "Bundling and Tying," Working Papers 14-22, NET Institute.
    3. Ravi Mantena & Rajib L. Saha, 2022. "Market Share Contracts in B2B Procurement Settings with Heterogeneous User Preferences," Production and Operations Management, Production and Operations Management Society, vol. 31(3), pages 1290-1308, March.
    4. David E. Mills, 2017. "Inducing Cooperation with a Carrot Instead of a Stick," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 50(2), pages 245-261, March.
    5. Roman Inderst & Greg Shaffer, 2010. "Market‐share contracts as facilitating practices," RAND Journal of Economics, RAND Corporation, vol. 41(4), pages 709-729, December.
    6. Janusz Ordover & Greg Shaffer, 2007. "Exclusionary Discounts," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2007-13, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    7. Calzolari, Giacomo & Denicolò, Vincenzo, 2011. "On the anti-competitive effects of quantity discounts," International Journal of Industrial Organization, Elsevier, vol. 29(3), pages 337-341, May.
    8. Ordover, Janusz A. & Shaffer, Greg, 2013. "Exclusionary discounts," International Journal of Industrial Organization, Elsevier, vol. 31(5), pages 569-586.
    9. Adrian Majumdar & Greg Shaffer, 2009. "Market‐Share Contracts with Asymmetric Information," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(2), pages 393-421, June.
    10. Adrian Majumdar & Greg Shaffer, 2007. "Market-Share Contracts with Asymmetric Information," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2007-17, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    11. Calzolari, Giacomo & Denicolo, Vincenzo, 2010. "Competitive quantity discounts," CEPR Discussion Papers 8144, C.E.P.R. Discussion Papers.

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