Department of Econonomics
140 Commonwealth Avenue
Chestnut Hill, MA 02467
Institutional Affiliation: Boston College
NBER Working Papers and Publications
|June 2016||Empirical Evidence on Conditional Pricing Practices|
with Julie Holland Mortimer: w22313
Conditional pricing practices allow the terms of sale between a producer and a downstream distributor to vary based on the ability of the downstream firm to meet a set of conditions put forward by the producer. The conditions may require a downstream firm to accept minimum quantities or multiple products, to adhere to minimum market-share requirements, or even to deal exclusively with one producer. The form of payment from the producer to the downstream firm may take the form of a rebate, marketing support, or simply the willingness to supply inventory. The use of conditional pricing practices is widespread throughout many industries, and the variety of contractual forms used in these arrangements is nearly as extensive as the number of contracts. This paper reviews empirical evidence on t...