Efficiency and Foreclosure Effects of Vertical Rebates: Empirical Evidence

Previously circulated as "All-Units Discounts: Experimental Evidence from the Vending Industry" and "Efficiency and Foreclosure Effects of All-Units Discounts: Empirical Evidence." We thank Mark Stein, Bill Hannon, and the drivers at Mark Vend Company for implementing the experiment used in this paper, providing data, and generally educating us about the vending industry. We thank Susanto Basu, Michaela Draganska, Scott Hemphill, Wills Hickman, J. F. Houde, Sylvia Hristakeva, Robin Lee, Joe Quinn, Michael Riordan, Greg Shaffer, Mike Whinston, and seminar participants at Bates White, Boston College, Boston University, Harvard Business School, Harvard University (Economics Department), MIT, Pennsylvania State University, Rochester University, SUNY Stony Brook, Tufts University, Universitat Autonoma de Barcelona, Universitat Pompeu Fabra, University of Toronto, and Washington University in St. Louis, Yale University, and participants at the Quantitative Marketing and Economics conference and the Workshop on Conditional Pricing Practices (held jointly by the Department of Justice and the Federal Trade Commission), for helpful comments. Any remaining errors are our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

• December 27, 2013
• June 23, 2014