Unraveling the spreading pattern of collusively effectivecompetition clauses

Meanwhile, the Industrial Organization literature gives several reasons why retailers adopt competition clauses (CCs) such as price matching or price beating guarantees. The motivations underlying the CCs might affect their forms and spread. In this paper, we unravel the spreading pattern of CCs in markets where they are used as a device to facilitate tacit collusion. It turns out that in homogeneous markets with capacity-constrained retailers, the retailers with the largest capacities are most inclined to adopt CCs. Our finding is in line with results of earlier studies on the formation of price leadership, which suggest that the retailers with the largest capacities take on the leadership position. On the other side, we find that in some market instances, retailers have to resort to CCs of non-conventional forms (i.e., of forms uncommon in real commercial life) to induce the most robust collusion. However, it turns out that this peculiar finding can be resolved for markets with additional characteristics. For example, if there exist market dominant retailers or the residual market demand is specified by efficient rationing, the most resilient collusion can also be enforced by CCs of conventional forms

The Effects of Consumer Buying Habits in the Automotive Industry

This study addressed the effects of consumer buying habits in the automotive industry. With consumer buying habits constantly changing and the advancement of technology and e-commerce, there is a growing opportunity for brick-and-mortar stores and dealerships to adapt their strategies to maintain and enhance revenues and profitability. Failure of organizations to adapt their strategies have resulted in a loss of revenue and led to bankruptcy. This qualitative case study addressed the failure of an organization to adapt to consumer buying habits in the automotive industry resulting in a loss of revenue and profitability. Further, the study provided an understanding of the actions taken by organizations to increase profits, and also the upcoming consumer buying habit trends that will cause an organization to adapt their strategies to maintain and enhance revenues. The results of this study indicated that a dealership’s adaptability was a necessity in a constantly changing industry. The actions taken by the dealership group included aggressive pricing, use of new technology, advertisement initiatives, and strategies, such as off-site and on-site services were effective among other results. While electrification was a common theme of discussion, the results of this study indicated no significant concern for upcoming trends