Thursday, December 8, 2011

Exam

We will do two hours and fifteen minutes, as I had mentioned would be possible, starting at 7.

I have not done up the test yet but most likely there will be four questions, and you are likely to have some choice in what you answer, something like "pick four out of six."

On slotting fees, not enough people considered:

1. What are the potential externalities here?

2. What is the potential market power?

3. If slotting fees are banned, might a manufacturer offer a lower per unit price (higher profit margin for the retailer) to try to bring about the same result? Would that bring about the same result, or not? etc.

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