The OECD holds a roundtable on fidelity rebates and competition

Executive summary, by the Secretariat * From the discussion at the hearing, the delegates’ and experts’ written submissions, several key points emerged: 1. Fidelity rebates or loyalty discount schemes are widely used and are often beneficial for consumers. Rebates based on quantity, and in some cases even those based on exclusivity, can potentially generate a number of efficiencies. They may pass economies of scale onto consumers. Alternatively, they can give distributors an incentive to increase their effort to sell the firm’s product. They can also be used to price discriminate, in which case they may increase competition and expand output. In addition, they might be used to stimulate downstream competition. Firms use fidelity rebates or loyalty discount schemes to offer better

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  • OECD - Competition Division (Paris)

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OECD, The OECD holds a roundtable on fidelity rebates and competition, 15 June 2016, e-Competitions June 2016, Art. N° 85523

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