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The Australian grocery industry: a competition perspective

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  • Rhonda L. Smith

Abstract

This article discusses whether at a theoretical level the large and growing role of the vertically integrated supermarket chains raises a buyer‐power concern because of potential harm to other retailers, suppliers, and/or consumers. Even if this is possible, whether it is a real concern depends on whether provision exists to constrain the exercise of that power through market responses, such as entry, or through regulatory provisions, such as those contained in the Trade Practices Act.

Suggested Citation

  • Rhonda L. Smith, 2006. "The Australian grocery industry: a competition perspective," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(1), pages 33-50, March.
    • Handle: RePEc:bla:ajarec:v:50:y:2006:i:1:p:33-50
    DOI: 10.1111/j.1467-8489.2006.00326.x
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    File URL: https://doi.org/10.1111/j.1467-8489.2006.00326.x
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    References listed on IDEAS

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    1. Bliss, Christopher, 1988. "A Theory of Retail Pricing," Journal of Industrial Economics, Wiley Blackwell, vol. 36(4), pages 375-391, June.
    2. Unknown, 2005. "Antitrust Analysis of Supermarket Retailing: Common Global Concerns that Play Out in Local Markets," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137831, Australian Agricultural and Resource Economics Society.
    3. Cotterill, Ronald W., 2005. "Antitrust Analysis of Supermarket Retailing: Common Global Concerns that Play Out in Local Markets," Research Reports 25184, University of Connecticut, Food Marketing Policy Center.
    4. repec:bla:ausecr:v:37:y:2004:i:3:p:329-336 is not listed on IDEAS
    5. Roger R. Betancourt, 2004. "The Economics of Retailing and Distribution," Books, Edward Elgar Publishing, number 3511.
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    Cited by:

    1. Chang, Hui-Shung & Mira, Zenaida & Griffith, Garry, 2012. "The Market Development Project: A Case of Government Failure?," Papers 234292, University of Melbourne, Melbourne School of Land and Environment.
    2. David K. Round, 2006. "The power of two: squaring off with Australia's large supermarket chains," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(1), pages 51-64, March.
    3. John Freebairn, 2018. "Effects of supermarket monopsony pricing on agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(4), pages 548-562, October.
    4. Round, David K., 2006. "The power of two: squaring off with Australia’s large supermarket chains," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(1), pages 1-14, March.

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