IDEAS home Printed from https://ideas.repec.org/p/crs/wpaper/2013-49.html
   My bibliography  Save this paper

The effects of Retail Regulations on Prices : Evidence from the Loi Galland

Author

Listed:
  • Pierre Biscourp

    (INSEE)

  • Xavier Boutin

    (European Commission and Université Libre de Bruxelles)

  • Thibaud Vergé

    (CREST)

Abstract

Using a unique dataset merging micro data at product and store level with data on competition within local grocery markets, this paper provides an empirical analysis of a legislation that had the same effect as allowing industry-wide price floors. It shows that, after the introduction of the legislation, the link between retail prices and market concentration has significantly been weakened, especially for branded products. Price dispersion has dropped for branded products more than for store brands and price convergence appears to have taken place across stores. These results are consistent with recent theories on the anticompetitive effects of resale price maintenance in markets with interlocking relationships.

Suggested Citation

  • Pierre Biscourp & Xavier Boutin & Thibaud Vergé, 2013. "The effects of Retail Regulations on Prices : Evidence from the Loi Galland," Working Papers 2013-49, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:2013-49
    as

    Download full text from publisher

    File URL: http://crest.science/RePEc/wpstorage/2013-49.pdf
    File Function: Crest working paper version
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Martimort, David & Pouyet, Jérôme, 2024. "Promotional Allowances: Loss Leading as an Incentive Device," TSE Working Papers 24-1564, Toulouse School of Economics (TSE).
    2. Céline Bonnet & Pierre Dubois, 2010. "Inference on vertical contracts between manufacturers and retailers allowing for nonlinear pricing and resale price maintenance," RAND Journal of Economics, RAND Corporation, vol. 41(1), pages 139-164, March.
    3. Xavier D’Haultfoeuille & Pauline Givord, 2014. "La régression quantile en pratique," Économie et Statistique, Programme National Persée, vol. 471(1), pages 85-111.
    4. Réquillart, Vincent & Simioni, Michel & Varela-Irimia, Xose-Luis, 2008. "Imperfect Competition in the Fresh Tomato Industry," IDEI Working Papers 498, Institut d'Économie Industrielle (IDEI), Toulouse, revised 25 Feb 2009.
    5. Patrick Rey & Thibaud Vergé, 2010. "Resale Price Maintenance And Interlocking Relationships," Journal of Industrial Economics, Wiley Blackwell, vol. 58(4), pages 928-961, December.
    6. Bonnet, Céline & Réquillart, Vincent, 2013. "Sugar Policy Reform, Tax Policy and Price Transmission in the Soft Drink Industry," TSE Working Papers 13-373, Toulouse School of Economics (TSE).
    7. Marie-Laure Allain & Claire Chambolle & Stéphane Turolla & Sofia B. Villas-Boas, 2013. "The Impact of Retail Mergers on Food Prices : Evidence from France," Working Papers 2013-18, Center for Research in Economics and Statistics.
    8. Miklós-Thal, Jeanine & Rey, Patrick & Vergé, Thibaud, 2010. "Vertical relations," International Journal of Industrial Organization, Elsevier, vol. 28(4), pages 345-349, July.
    9. Stéphane Turolla, 2016. "Spatial Competition in the French Supermarket Industry," Annals of Economics and Statistics, GENES, issue 121-122, pages 213-259.
    10. Marie-Laure Allain & Claire Chambolle & Stéphane Turolla & Sofia B. Villas-Boas, 2017. "Retail Mergers and Food Prices: Evidence from France," Journal of Industrial Economics, Wiley Blackwell, vol. 65(3), pages 469-509, September.
    11. repec:ags:aaea22:335985 is not listed on IDEAS
    12. Emanuele Giovannetti & Laura Magazzini, 2013. "Resale Price Maintenance: An Empirical Analysis of UK Firms' Compliance," Economic Journal, Royal Economic Society, vol. 123(11), pages 582-595, November.
    13. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    14. Clémence Berson, 2012. "Does Competition Induce Hiring Equity ?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00718627, HAL.
    15. Juan Esteban Carranza & Robert Clark & Jean-François Houde, 2015. "Price Controls and Market Structure: Evidence from Gasoline Retail Markets," Journal of Industrial Economics, Wiley Blackwell, vol. 63(1), pages 152-198, March.
    16. Bonnet, Céline & Réquillart, Vincent, 2013. "Tax incidence with strategic firms in the soft drink market," Journal of Public Economics, Elsevier, vol. 106(C), pages 77-88.
    17. Eliana Viviano & Luciana Aimone Gigio & Emanuela Ciapanna & Daniele Coin & Fabrizio Colonna & Federica Lagna & Raffaele Santioni, 2012. "The retail trade sector and the food industry in Italy," Questioni di Economia e Finanza (Occasional Papers) 119, Bank of Italy, Economic Research and International Relations Area.
    18. Célérier, C., 2009. "Forecasting inflation in France," Working papers 262, Banque de France.
    19. Bonnet, Céline & Réquillart, Vincent, 2011. "Strategic Pricing and Health Price Policies," IDEI Working Papers 671, Institut d'Économie Industrielle (IDEI), Toulouse, revised Jul 2012.
    20. Rebecca Cleary & Lauren Chenarides, 2022. "Food retail profits, competition, and the Great Recession," Agribusiness, John Wiley & Sons, Ltd., vol. 38(3), pages 557-578, July.

    More about this item

    Keywords

    retail prices; pricing regulations; resale price maintenance;
    All these keywords.

    JEL classification:

    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:crs:wpaper:2013-49. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Secretariat General (email available below). General contact details of provider: https://edirc.repec.org/data/crestfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.