2015-02
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Number
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2015-02 | |
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Authors
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Horst Raff, Nicolas Schmitt | |
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Title
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Retailing and International Trade: A Survey of the Literature | |
| 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. Keywords: retailing, international trade, vertical restraint JEL classification: |
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| Links | Full Text | |