SSE/EFI Working Paper Series in Economics and Finance
Marcus Asplund and Richard Friberg
Retail price levels and concentration of wholesalers, retailers, and hypermarkets
Abstract: This paper examines retail grocery price levels with a
very large (unbalanced) panel of stores that operate in well-defined local
markets. We explain price variation across grocery retailers by the
concentration of wholesalers and retailers, and the market share of
hypermarkets (and control for a number of store and region specific
factors). Our most important result is that concentration at the wholesale
level is an important determinant of retail prices. The price effect of
retail concentration and hypermarket market share are statistically
significant but small in economic terms.
Keywords: Firm concentration; market structure; price competition; grocery retail; grocery wholesale; (follow links to similar papers)
JEL-Codes: D43; L13; L81; (follow links to similar papers)
27 pages, May 12, 1999
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