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Market-Structure Determinants Of National Brand-Private Label Price Differences Of Manufactured Food Products

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  • Connor, John M.
  • Wills, Robert L.

Abstract

This paper estimates the relationships between market structure and price margins between manufacturers' brands and private-label processed food products. These margins, which are related to the Lerner index of monopoly, are computed from two unusual retail price sources spanning 1975-1980. Market seller concentration and product differentiation are significant determinants of higher price margins.

Suggested Citation

  • Connor, John M. & Wills, Robert L., 1987. "Market-Structure Determinants Of National Brand-Private Label Price Differences Of Manufactured Food Products," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 270111, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea87:270111
    DOI: 10.22004/ag.econ.270111
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    References listed on IDEAS

    as
    1. Connor, John M & Peterson, Everett B, 1992. "Market-Structure Determinants of National Brand-Private Label Price Differences of Manufactured Food Products," Journal of Industrial Economics, Wiley Blackwell, vol. 40(2), pages 157-171, June.
    2. John M. Connor & Scott Weimer, 1986. "The intensity of advertising and other selling expenses in food and tobacco manufacturing: Measurement, determinants, and impacts," Agribusiness, John Wiley & Sons, Ltd., vol. 2(3), pages 293-319.
    3. Schmalensee, Richard, 1989. "Inter-industry studies of structure and performance," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 16, pages 951-1009, Elsevier.
    4. Hamm, Larry G., 1981. "The Impact of Food Distributor Procurement Practices on food System Structure and Coordination," Working Papers 202964, University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group.
    5. Porter, Michael E, 1976. "Interbrand Choice, Media Mix and Market Performance," American Economic Review, American Economic Association, vol. 66(2), pages 398-406, May.
    6. Nickell, Stephen J & Metcalf, David, 1978. "Monopolistic Industries and Monopoly Profits or, Are Kellogg's Cornflakes Overpriced?," Economic Journal, Royal Economic Society, vol. 88(350), pages 254-268, June.
    7. A. Desmond O'Rourke & W. Smith Greig, 1981. "Estimates of Consumer Loss Due to Monopoly in the U.S. Food-Manufacturing Industries: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(2), pages 285-289.
    8. Pagoulatos, Emilio & Sorensen, Robert, 1986. "What determines the elasticity of industry demand?," International Journal of Industrial Organization, Elsevier, vol. 4(3), pages 237-250, September.
    9. Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-754, July/Aug..
    10. Joseph E. Stiglitz & G. Frank Mathewson (ed.), 1986. "New Developments in the Analysis of Market Structure," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262690934, April.
    11. Bhagwati, Jagdish N, 1970. "Oligopoly Theory, Entry-prevention, and Growth," Oxford Economic Papers, Oxford University Press, vol. 22(3), pages 297-310, November.
    12. repec:bla:econom:v:43:y:1976:i:171:p:267-74 is not listed on IDEAS
    13. John M. Connor, 1981. "Food Product Proliferation: A Market Structure Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(4), pages 607-617.
    14. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 2, number 2.
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    17. J. N. Bhagwati, 1970. "Oligopoly Theory, Entry-Prevention and Growth," Working papers 47, Massachusetts Institute of Technology (MIT), Department of Economics.
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    Demand and Price Analysis; Marketing;

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