Customer return policies for experience goods
Article Abstract:
The economic rationale for the retail practice of allowing customers to return merchandise is examined in terms of consumer learning issues. Analysis shows that generous return policies lead to improved risk-sharing between sellers and customers, allowing consumers to protect themselves against any loss. In contrast, the absence of these customer return policies, provides zero expected utility to consumers, thereby reducing the incentive to shop at stores that do not permit the return of merchandise within a reasonable time frame.
Publication Name: Journal of Industrial Economics
Subject: Economics
ISSN: 0022-1821
Year: 1996
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Is Japan's retail sector truly distinctive?
Article Abstract:
Japan's retail sector is statistically analyzed to determine whether it is distinctive. International differences in numbers of stores per person, based on data from 16 countries, are analyzed. The country's ubiquity of retail stores mirrors its geography, transport system and limited living space. Such a ubiquity is found to be an economic response to unique local conditions.
Publication Name: Journal of Comparative Economics
Subject: Economics
ISSN: 0147-5967
Year: 1996
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Slotting allowances and retailer market power
Article Abstract:
A study on correlation between slotting allowances in retailing industry, and retailer market power, is presented. For the purpose, a bilateral oligopoly model is used.
Publication Name: Journal of Economic Studies
Subject: Economics
ISSN: 0144-3585
Year: 2006
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