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Discount Chains and Brand Policy

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  • Gabrielsen, Tommy Staahl
  • Sorgard, Lars

Abstract

Retail chains are observed in many industries. The question addressed here is whether retail chains can exploit buyer power by excluding some brands. In a theoretical model with two differentiated producers and a single retailer, the authors show that a retailer will require exclusivity (exclude a brand) if the brands are sufficiently symmetric in demand potential. Exclusivity will increase welfare if the excluded brand is a close substitute for the brand carried by the retailer. The authors' theoretical results are also set in relation to some findings from the Norwegian grocery industry. Copyright 1999 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Gabrielsen, Tommy Staahl & Sorgard, Lars, 1999. "Discount Chains and Brand Policy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(1), pages 127-142, March.
    • Handle: RePEc:bla:scandj:v:101:y:1999:i:1:p:127-42
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    Cited by:

    1. Gabrielsen, Tommy Staahl & Sorgard, Lars, 2007. "Private labels, price rivalry, and public policy," European Economic Review, Elsevier, vol. 51(2), pages 403-424, February.
    2. Ramon Fauli-Oller & Borja Mesa-Sánchez, 2015. "Losses from Horizontal Merger: an Extension to a Successive Oligopoly Model with Product Differentiation," Manchester School, University of Manchester, vol. 83(5), pages 604-621, September.
    3. Gabrielsen, Tommy Staahl, 2005. "Slotting Allowances and Buy-Back Clauses," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24580, European Association of Agricultural Economists.

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