MARKET POWER AND OFF-INVOICE TRADE PROMOTIONS IN THE US: AN EMPIRICAL INVESTIGATION

This article employs a Tobit model to examine whether the market power of manufacturers and retailers influence trade promotion decisions in the US food sector. Greater retailer market power increases allocation of funds to off-invoice trade promotions. We find evidence that the balance of power favors food retailers.Marketing,

MARKET POWER AND OFF-INVOICE TRADE PROMOTIONS IN THE US: AN EMPIRICAL INVESTIGATION

This article employs a Tobit model to examine whether the market power of manufacturers and retailers influence trade promotion decisions in the US food sector. Greater retailer market power increases allocation of funds to off-invoice trade promotions. We find evidence that the balance of power favors food retailers