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  Naked Slotting Fees for Vertical Control of Multi-Product Retail Markets
Robert Innes and Stephen Hamilton
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  Abstract
 
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.

 

 
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2011 Dept. of Agricultural & Resource Economics, The University of Arizona
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Last updated November 9, 2004
Document located at http://ag.arizona.edu/arec/pubs/researchpapers/abstract2004-10.html