Slotting Allowances as Real Options: An Alternative Explanation
This article offers an alternative explanation for slotting allowances using contingent claims analysis, or real option pricing. Slotting allowances arise because retailers hold call options on their shelf space while suppliers must buy these options to introduce a new product. A simulated model of...
Gespeichert in:
| Veröffentlicht in: | The Journal of business (Chicago, Ill.) Ill.), 2004-10, Vol.77 (4), p.675-696 |
|---|---|
| Hauptverfasser: | , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 696 |
|---|---|
| container_issue | 4 |
| container_start_page | 675 |
| container_title | The Journal of business (Chicago, Ill.) |
| container_volume | 77 |
| creator | Richards, Timothy J. Patterson, Paul M. |
| description | This article offers an alternative explanation for slotting allowances using contingent claims analysis, or real option pricing. Slotting allowances arise because retailers hold call options on their shelf space while suppliers must buy these options to introduce a new product. A simulated model of new‐product introduction shows that stocking a new product contains a significant, imbedded real option component. We also show that advertising and promotional support can reduce the real option value. |
| doi_str_mv | 10.1086/422436 |
| format | Article |
| fullrecord | <record><control><sourceid>jstor_proqu</sourceid><recordid>TN_cdi_proquest_miscellaneous_38032530</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><jstor_id>10.1086/422436</jstor_id><sourcerecordid>10.1086/422436</sourcerecordid><originalsourceid>FETCH-LOGICAL-c387t-6746fc695a2887cadd644919ac27afb6868cfbf8e98c0ee580c134365f9796b13</originalsourceid><addsrcrecordid>eNpdkNtKAzEQhoMouFZ9Ai8WL7xbzWmziTdSSj1AoeDhOmTTRLakmzXJenh7UyoKDgwzMB___DMAnCJ4iSBnVxRjStgeKFBNmion3QcFhBhVggh-CI5iXMNtEFqAmyfnU-r613LqnP9QvTaxVLF8NMqVyyF1vo_X5bTP42RCr1L3bsr55-DUtvf9MTiwykVz8lMn4OV2_jy7rxbLu4fZdFFpwptUsYYyq5moFea80Wq1YpQKJJTGjbIt44xr21puBNfQmJpDjUi-oraiEaxFZAIudrpD8G-jiUluuqiNyz6MH6MkHBJcE5jB83_g2o_ZuIsSE4Z5diL-1HTwMQZj5RC6jQpfEkG5faLcPTGDZztwHZMPvxRhLC_E5Bu8imsQ</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>236286749</pqid></control><display><type>article</type><title>Slotting Allowances as Real Options: An Alternative Explanation</title><source>Elektronische Zeitschriftenbibliothek - Frei zugängliche E-Journals</source><source>Business Source Complete</source><source>Jstor Complete Legacy</source><creator>Richards, Timothy J. ; Patterson, Paul M.</creator><creatorcontrib>Richards, Timothy J. ; Patterson, Paul M.</creatorcontrib><description>This article offers an alternative explanation for slotting allowances using contingent claims analysis, or real option pricing. Slotting allowances arise because retailers hold call options on their shelf space while suppliers must buy these options to introduce a new product. A simulated model of new‐product introduction shows that stocking a new product contains a significant, imbedded real option component. We also show that advertising and promotional support can reduce the real option value.</description><identifier>ISSN: 0021-9398</identifier><identifier>EISSN: 1537-5374</identifier><identifier>DOI: 10.1086/422436</identifier><identifier>CODEN: JOBUAQ</identifier><language>eng</language><publisher>Chicago: The University of Chicago Press</publisher><subject>Advertising ; Business studies ; Capital costs ; Competition ; Cost estimates ; Economic value ; Equilibrium ; Fees ; Fees & charges ; Financial investments ; Marketing ; Opportunity costs ; Option pricing ; Product development ; Product introduction ; Put & call options ; Real options analysis ; Resale price maintenance ; Retail industries ; Retail stores ; Retailing ; Studies ; Suppliers ; Value</subject><ispartof>The Journal of business (Chicago, Ill.), 2004-10, Vol.77 (4), p.675-696</ispartof><rights>2004 by The University of Chicago. All rights reserved.</rights><rights>Copyright University of Chicago, acting through its Press Oct 2004</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c387t-6746fc695a2887cadd644919ac27afb6868cfbf8e98c0ee580c134365f9796b13</citedby><cites>FETCH-LOGICAL-c387t-6746fc695a2887cadd644919ac27afb6868cfbf8e98c0ee580c134365f9796b13</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><link.rule.ids>314,778,782,801,27911,27912</link.rule.ids></links><search><creatorcontrib>Richards, Timothy J.</creatorcontrib><creatorcontrib>Patterson, Paul M.</creatorcontrib><title>Slotting Allowances as Real Options: An Alternative Explanation</title><title>The Journal of business (Chicago, Ill.)</title><description>This article offers an alternative explanation for slotting allowances using contingent claims analysis, or real option pricing. Slotting allowances arise because retailers hold call options on their shelf space while suppliers must buy these options to introduce a new product. A simulated model of new‐product introduction shows that stocking a new product contains a significant, imbedded real option component. We also show that advertising and promotional support can reduce the real option value.</description><subject>Advertising</subject><subject>Business studies</subject><subject>Capital costs</subject><subject>Competition</subject><subject>Cost estimates</subject><subject>Economic value</subject><subject>Equilibrium</subject><subject>Fees</subject><subject>Fees & charges</subject><subject>Financial investments</subject><subject>Marketing</subject><subject>Opportunity costs</subject><subject>Option pricing</subject><subject>Product development</subject><subject>Product introduction</subject><subject>Put & call options</subject><subject>Real options analysis</subject><subject>Resale price maintenance</subject><subject>Retail industries</subject><subject>Retail stores</subject><subject>Retailing</subject><subject>Studies</subject><subject>Suppliers</subject><subject>Value</subject><issn>0021-9398</issn><issn>1537-5374</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2004</creationdate><recordtype>article</recordtype><recordid>eNpdkNtKAzEQhoMouFZ9Ai8WL7xbzWmziTdSSj1AoeDhOmTTRLakmzXJenh7UyoKDgwzMB___DMAnCJ4iSBnVxRjStgeKFBNmion3QcFhBhVggh-CI5iXMNtEFqAmyfnU-r613LqnP9QvTaxVLF8NMqVyyF1vo_X5bTP42RCr1L3bsr55-DUtvf9MTiwykVz8lMn4OV2_jy7rxbLu4fZdFFpwptUsYYyq5moFea80Wq1YpQKJJTGjbIt44xr21puBNfQmJpDjUi-oraiEaxFZAIudrpD8G-jiUluuqiNyz6MH6MkHBJcE5jB83_g2o_ZuIsSE4Z5diL-1HTwMQZj5RC6jQpfEkG5faLcPTGDZztwHZMPvxRhLC_E5Bu8imsQ</recordid><startdate>200410</startdate><enddate>200410</enddate><creator>Richards, Timothy J.</creator><creator>Patterson, Paul M.</creator><general>The University of Chicago Press</general><general>University of Chicago, acting through its Press</general><scope>AAYXX</scope><scope>CITATION</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>200410</creationdate><title>Slotting Allowances as Real Options: An Alternative Explanation</title><author>Richards, Timothy J. ; Patterson, Paul M.</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c387t-6746fc695a2887cadd644919ac27afb6868cfbf8e98c0ee580c134365f9796b13</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2004</creationdate><topic>Advertising</topic><topic>Business studies</topic><topic>Capital costs</topic><topic>Competition</topic><topic>Cost estimates</topic><topic>Economic value</topic><topic>Equilibrium</topic><topic>Fees</topic><topic>Fees & charges</topic><topic>Financial investments</topic><topic>Marketing</topic><topic>Opportunity costs</topic><topic>Option pricing</topic><topic>Product development</topic><topic>Product introduction</topic><topic>Put & call options</topic><topic>Real options analysis</topic><topic>Resale price maintenance</topic><topic>Retail industries</topic><topic>Retail stores</topic><topic>Retailing</topic><topic>Studies</topic><topic>Suppliers</topic><topic>Value</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Richards, Timothy J.</creatorcontrib><creatorcontrib>Patterson, Paul M.</creatorcontrib><collection>CrossRef</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>The Journal of business (Chicago, Ill.)</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Richards, Timothy J.</au><au>Patterson, Paul M.</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Slotting Allowances as Real Options: An Alternative Explanation</atitle><jtitle>The Journal of business (Chicago, Ill.)</jtitle><date>2004-10</date><risdate>2004</risdate><volume>77</volume><issue>4</issue><spage>675</spage><epage>696</epage><pages>675-696</pages><issn>0021-9398</issn><eissn>1537-5374</eissn><coden>JOBUAQ</coden><abstract>This article offers an alternative explanation for slotting allowances using contingent claims analysis, or real option pricing. Slotting allowances arise because retailers hold call options on their shelf space while suppliers must buy these options to introduce a new product. A simulated model of new‐product introduction shows that stocking a new product contains a significant, imbedded real option component. We also show that advertising and promotional support can reduce the real option value.</abstract><cop>Chicago</cop><pub>The University of Chicago Press</pub><doi>10.1086/422436</doi><tpages>22</tpages></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0021-9398 |
| ispartof | The Journal of business (Chicago, Ill.), 2004-10, Vol.77 (4), p.675-696 |
| issn | 0021-9398 1537-5374 |
| language | eng |
| recordid | cdi_proquest_miscellaneous_38032530 |
| source | Elektronische Zeitschriftenbibliothek - Frei zugängliche E-Journals; Business Source Complete; Jstor Complete Legacy |
| subjects | Advertising Business studies Capital costs Competition Cost estimates Economic value Equilibrium Fees Fees & charges Financial investments Marketing Opportunity costs Option pricing Product development Product introduction Put & call options Real options analysis Resale price maintenance Retail industries Retail stores Retailing Studies Suppliers Value |
| title | Slotting Allowances as Real Options: An Alternative Explanation |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-15T22%3A39%3A48IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-jstor_proqu&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Slotting%20Allowances%20as%20Real%20Options:%20An%20Alternative%20Explanation&rft.jtitle=The%20Journal%20of%20business%20(Chicago,%20Ill.)&rft.au=Richards,%20Timothy%C2%A0J.&rft.date=2004-10&rft.volume=77&rft.issue=4&rft.spage=675&rft.epage=696&rft.pages=675-696&rft.issn=0021-9398&rft.eissn=1537-5374&rft.coden=JOBUAQ&rft_id=info:doi/10.1086/422436&rft_dat=%3Cjstor_proqu%3E10.1086/422436%3C/jstor_proqu%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=236286749&rft_id=info:pmid/&rft_jstor_id=10.1086/422436&rfr_iscdi=true |