The benefits of consumer rebates: A strategy for gray market deterrence
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id="para0001">We establish a model where a manufacturer sells goods in two markets and the delegated retailer may potentially sell in a gray market.

id="para0002">We show that the manufacturer can use rebates to deter the gray market (parallel importation).

id="para0003">Consumer rebates are beneficial to the manufacturer and possibly to retailer.

id="para0004">Partial redemption of rebates is not always a blessing to the manufacturer.

id="para0005">Rebate leakage or rebate under-valuation by consumers is not always a bad thing to the retailer.

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