RETAIL VIEW: Academics blasted for slotting fee defense
RETAIL VIEW: Academics blasted for slotting fee defense
Two academics who recently published a paper that concluded that retail slotting fees were an efficient way to introduce new products have seen their study blasted by many in the grocery industry. The report, Are Slotting Allowances Efficiency-Enhancing or Anti-Competitive?, was written by K. Sudhir, a professor at the Yale School of Management, and Vithala R. Rao, a professor at Cornell Universitys School of Management. Using data from one northeastern chain and dating back to the mid-1980s, the researchers concluded that slotting allowances serve to efficiently allocate scarce retail shelf