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The Price Effects of an Emerging Retail Market

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  • JiÅí Podpiera
  • Marie Raková

Abstract

This paper analyzes the effects of a changing market structure on the price dynamics of final goods in an emerging Czech retail market. We estimate the extent of up-and downstream market power and find that the changing market structure was responsible for an average yearly price decrease of retailed products by 0.8 percentage points during 2000-2005. At the same time, however, we anticipate that a period of mergers and acquisitions that has already started could cause yearly price increases of retailed products by 1.2 percentage pointsâapproximately 0.5 percentage points in the consumer price index inflationâover the next ten years.

Suggested Citation

  • JiÅí Podpiera & Marie Raková, 2009. "The Price Effects of an Emerging Retail Market," Eastern European Economics, Taylor & Francis Journals, vol. 47(1), pages 92-105, January.
    • Handle: RePEc:mes:eaeuec:v:47:y:2009:i:1:p:92-105
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    8. Horvath, Michael & Schivardi, Fabiano & Woywode, Michael, 2001. "On industry life-cycles: delay, entry, and shakeout in beer brewing," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1023-1052, July.
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    More about this item

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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