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Market Power in UK Food Retailing Pouvoir de marché du secteur alimentaire de détail au Royaume‐Uni Marktmacht im Lebensmitteleinzelhandel in Großbritannien

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  • Tim Lloyd
  • Wyn Morgan

Abstract

Market Power in UK Food Retailing Deepening concentration in the food chain throughout Europe suggests antitrust authorities need to be ever vigilant to deter the use of market power. In this article, the authors highlight some of the problems that regulatory authorities face when collating evidence on the existence and use of market power in the food industry, not least the reticence of food suppliers to inform on supermarkets undertaking anti‐competitive practices. The article argues that the systematic effects that anti‐competitive practices have upon retail and producer prices offer economists the opportunity to detect the exercise of market power in publicly available aggregate data. Drawing on recent research, the article proposes a simple empirical test of the use of market power that is based on economic theory and complementary to extant sources of evidence. While the test does not measure the extent of market power, it does offer a tractable means of detecting its existence. The article summarises the findings from two recent academic papers in which the test has been applied. Results point to the existence of market power in all fresh food products that were assessed, corroborating both the conclusions of the first competition enquiry in 2000 and the recent decision to launch a further investigation into British supermarkets that is due to report in 2007. Au vu de l'accentuation de la concentration de la filière alimentaire dans l'ensemble de l'Europe, les autorités de la concurrence doivent veiller encore davantage à empêcher l'exercice de pouvoirs de marché. Dans cet article, les auteurs mettent l'accent sur certains des problèmes auxquels les autorités réglementaires sont confrontées lorsqu'elles enquêtent sur l'existence et l'exercice de pouvoirs de marché dans l'industrie alimentaire, en particulier la réticence des fournisseurs alimentaires à dénoncer les supermarchés qui exercent des pratiques anticoncurrentielles. Selon cet article, les effets systématiques que les pratiques anticoncurrentielles ont sur les prix à la production et de détail permettent aux économistes de détecter l'exercice de pouvoirs de marchéà partir de données agrégées publiées. A partir de recherches récentes, cet article propose un test empirique simple pour détecter l'exercice de pouvoirs de marché. Il est fondé sur la théorie économique et est complémentaire aux sources d'information existantes. Le test ne mesure pas l'intensité du pouvoir de marché mais il offre un moyen aisé de détecter son existence. Cet article résume les résultats de deux articles académiques récents dans lesquels ce test a été employé. Les résultats indiquent l'existence de pouvoir de marché pour tous les produits alimentaires frais qui ont étéétudiés. Ils corroborent donc les conclusions de la première enquête sur la concurrence de 2000 et la récente décision de lancer une enquête supplémentaire portant sur les supermarchés britanniques, dont les conclusions devraient être rendues en 2007. Die zunehmende Konzentration auf die Nahrungskette überall in Europa deutet darauf hin, dass die Kartellämter stets wachsam sein müssen, um den Gebrauch von Marktmacht zu verhindern. Dieser Beitrag hebt einige jener Probleme hervor, denen die Aufsichtsbehörden gegenüber stehen, wenn sie Beweismaterial für die Existenz und den Gebrauch von Marktmacht in der Lebensmittelindustrie zusammen tragen, wie z.B. nicht zuletzt das Widerstreben der Lebensmittelzulieferer, Supermärkte mit wettbewerbswidrigen Methoden zu melden. In diesem Beitrag wird dargelegt, dass die systematischen Auswirkungen von wettbewerbswidrigen Methoden auf die Einzelhandels‐ und Erzeugerpreise den Ökonomen eine Gelegenheit bieten, den Gebrauch von Marktmacht an Hand von öffentlich zugänglichen, aggregierten Daten aufzudecken. Unter Berücksichtigung der jüngsten Forschungsergebnisse wird in diesem Beitrag ein einfacher empirischer Test für den Gebrauch von Marktmacht vorgeschlagen, welcher auf der Wirtschaftstheorie basiert und die vorhandenen Beweisquellen ergänzt. Obwohl der Test nicht den Umfang der Marktmacht misst, handelt es sich doch dabei um ein einfaches Mittel, um deren Existenz aufzudecken. In diesem Beitrag werden die Ergebnisse zweier kürzlich verfasster wissenschaftlicher Veröffentlichungen zusammengefasst, in welchen der Test angewendet wurde. Die Ergebnisse legen es nahe, dass die Marktmacht in allen untersuchten Lebensmittelprodukten vorhanden ist. Dies untermauert sowohl die Schlussfolgerungen der ersten Wettbewerbsuntersuchung aus dem Jahr 2000 als auch die vor kurzem getroffene Entscheidung, eine weitere Untersuchung der britischen Supermärkte zu veranlassen, deren Ergebnisse im Jahr 2007 vorgestellt werden sollen.

Suggested Citation

  • Tim Lloyd & Wyn Morgan, 2007. "Market Power in UK Food Retailing Pouvoir de marché du secteur alimentaire de détail au Royaume‐Uni Marktmacht im Lebensmitteleinzelhandel in Großbritannien," EuroChoices, The Agricultural Economics Society, vol. 6(3), pages 22-29, December.
  • Handle: RePEc:bla:eurcho:v:6:y:2007:i:3:p:22-29
    DOI: 10.1111/j.1746-692X.2007.00071.x
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    References listed on IDEAS

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    1. Roger Clarke & Stephen Davies & Paul Dobson & Michael Waterson, 2002. "Buyer Power and Competition in European Food Retailing," Books, Edward Elgar Publishing, number 2405.
    2. Paul Wilson, 2003. "Papers from a Mini‐symposium on Competition in the Food Industry: An Introduction," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(1), pages 85-87, March.
    3. John Vickers, 2005. "Abuse of Market Power," Economic Journal, Royal Economic Society, vol. 115(504), pages 244-261, June.
    4. T. A. Lloyd & S. McCorriston & C. W. Morgan & A. J. Rayner, 2006. "Food scares, market power and price transmission: the UK BSE crisis," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(2), pages 119-147, June.
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