Naked Slotting Fees for Vertical Control of Multi-Product Retail Markets
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Slotting fees are fixed charges paid by food manufacturers to retailers for access to
the retail market. The practice is both increasingly common and increasingly controversial. This
note shows how imperfectly competitive retailers and a monopolistic supplier of one good can
use "naked" slotting fees – charges imposed on competitive suppliers of other goods – to extract
rent in vertically integrated multi-good markets.