Slotting allowances and scarce shelf space

Leslie M. Marx, Greg Shaffer

Research output: Contribution to journalArticlepeer-review

53 Citations (Scopus)

Abstract

Slotting allowances are payments made by manufacturers to obtain retail shelf space. They are widespread in the grocery industry and a concern to antitrust authorities. A popular view is that slotting allowances arise because there are more products than retailers can profitably carry given their shelf space. We show that the causality can also go the other way: the scarcity of shelf space may in part be due to the feasibility of slotting allowances. It follows that slotting allowances can be anticompetitive even if they have no effect on retail prices.
Original languageEnglish
Pages (from-to)575-603
Number of pages29
JournalJournal of Economics & Management Strategy
Volume19
Issue number3
DOIs
Publication statusPublished - Oct 2010

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