Retailors' Market Power, Slotting Allowance And Governmwnet Regulation

It is very general that retailers charge slotting allowance at home and abroad, research about slotting allowance by scholors are also very much,including theoretical research and empirical research. Slotting allowance is anti-competitive ,or can improve efficiency? Charging slotting allowance is reasonable or not? Slotting allowance is according to the new products or the developed products? What is slotting allowance welfare effect? About these questions, there are disputes in academic circles. In this paper, on the base of scholors' research at home and abroad, we study further on the relationship between retailors'market power and slotting allowance, reasonability of surviving about slotting allowance. The concrete embodiment is that studying slotting allowance by game analysis of retailors, between retailors and manufacturers, and analying slotting allowance welfare effect on these relevant side, all these provide theoretical basis for government regulation. It has practical significance on promoting our retailing developing healthly by using case to test the validity of the model.In this paper,we firstly review research results on slotting allowance at home and abroad.,and do brief review on these views. On the base of these, we use game theory to analyze several kinds of slotting allowance problem: (1) single retailor's decision when upstream is perfect competiton, downstream is monopoly. (2)duopoly model of upstream perfect competition, downstream oligopoly: one retailor charges slotting allowance, another one doesn't; two oligarch retailors both charge slotting allowance,but have no collusion; two oligarch retailors take collusion on charging slotting allowance together. (3)upstream and downstream are both oligopoly: when retailors charge slotting allowance, how do manufactuerrs choose strategy? Then, we analyze the effect of slotting allowance on the utility of retailors, manufacturers ,consumers and the social welfare. Then, we study the theoretical basis of slotting allowance regulation, summarize international experience of slotting allowance regulation, and according to our practice of regulation and existing outstanding problems, put forward measures and suggestions.Innovation of this paper: 1 .reveal the essence of slotting allowance. Generally, slotting allowance is the result of market power, or the requirement of improving the using efficiency of shelf and replacement of advertisement, this paper think that slotting allowance is product of retailors' market power. 2.innovation of game model. General theories mostly study the slotting allowance in the structure of perfect competitive manufacturers and oligopoly retailers, on the base, this paper studys perfect competitive manufacturers and single retailor decision model,perfect competitive manufacturers and duopoly retailers model and also oligopoly manufacturers and retailers model, wides research space. 3. analyze slotting allowance welfare effect when retailers have perfect market power and only have buyer market power, analyze concretely how effect retailers' profit and social welfare, when retailers have perfect market power, five retailors' behavior , like no price markup and no slotting allowance, no price markup and only with slotting allowance, price markup but no slotting allowance, price markup and slotting allowance, depreciate and charge slotting allowance. 4.put forward theoretical base of slotting allowance regulation, and also put forward measures and suggestions of slotting allowance regulation.The deficiency of this paper: 1 .it need do more theoretical research on definition of reasonal and not reasonal slotting allowance; 2.in the case of our appliance ,we lack more comprehensive and concrete data, so it weakens the value of case research on a certain extent.