2014-13
Number |
2015-02 |
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Authors |
Horst Raff, Nicolas Schmitt |
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Title |
Retailing and International Trade: A Survey of the Literature |
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Abstract |
This paper reviews the literature on how retailers, by their individual
behavior or as a group, influence international trade flows, and on how trade
affects the structure of the retail industry. After reviewing the evidence,
we discuss theoretical contributions set in an oligopolistic, game-theoretic
framework. An important message coming from these contributions is that when
trade liberalization occurs, there is a strong incentive to use vertical
restraints to soften price competition in order to mitigate the
pro-competitive impact of trade liberalization. We then review contributions
that consider retailing at the industry level to discuss what we know about
the impact of trade liberalization on structural changes in retailing, such
as changes in market concentration and the size distribution of retail firms,
on retailers’ assortments and even on upfront payments by manufacturers, such
as slotting allowances, to gain access to retail shelves. We conclude by
discussing some directions for future research. |
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Links |