Research On Economic Analysis And Regulation Of Large - Scale Retailers Collecting Channel Fee

In recent years, there are plenty of disputes between suppliers and retailers due to the charge of slotting allowance in market, which draws public attention. Although the academic study of this issue, the rationality of slotting allowance and its effect on market still can’t reach a consensus.Based on the present development status of retailer market, this paper found that the regional market concentration of retail market is relatively high. It also shows that economies of scale have appear in retail market through the empirical analysis methods.Following economic theoretical framework of SCP-R, this paper discuss market equilibrium and social welfare by analyzing game model of three stage, which is under circumstances of without slotting allowance, slotting allowance unrelated to commodity sales, slotting allowance associated with commodity sales and two type of slotting allowance charged at the same time. Conclusions are as follows:Large retailers charge slotting allowance associated with commodity sales contribute to the raise of its bargaining power. It has no influence on suppliers’ monopoly power to small retailers when large retailers charging any type of slotting allowance.Under same circumstances, wholesale price charged by suppliers has positive correlation with wholesale price charged by large retailers. Charging any type of slotting allowance will not improve equilibrium price in market. The internal reason why slotting allowance appears is that large retailers can increase profit by charging slotting allowance. Large retailers incline to charge both slotting allowance unrelated to commodity sales and slotting allowance associated with commodity sales rather than single type of it. Social welfare remains the same no matter which type of slotting allowance charged by large retailers.Further more, this paper found that government regulation will not improve social welfare by means of forbidding slotting allowance, on the contrary, it will lead to regulation failure when slotting allowance is forbidden.Finally, this paper provides some feasible suggestion of government regulation on slotting allowance by drawing on the experience of developed countries.