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Competition policy in a concentrated and globalized retail industry

Author

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  • Stéphane Caprice

    (Groupe de recherche en économie mathématique et quantitative - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique)

  • Vanessa von Schlippenbach

    (TUB - Technical University of Berlin / Technische Universität Berlin)

Abstract

During the last decades the face of retailing has changed as a result of an ongoing concentration process and the emergence of increasingly large-scale retail outlets. Retailers constitute, therefore, "strategic gatekeepers" to final consumer markets providing them with buyer power vis-à-vis their suppliers. By preventing market entry, existing retail regulations have further strengthened the dominant position of retailers. In order to overcome the potential abuse of buyer power and thus to circumvent the induced inefficiencies, competition among retailers has to be encouraged. This gains in importance since the retail sector is also characterized by a strong internationalization process affecting both the worldwide spread of retail companies as well as their procurement strategies. In this regard, downstream competition is the only way to compensate the missing global legislation and jurisdiction.

Suggested Citation

  • Stéphane Caprice & Vanessa von Schlippenbach, 2008. "Competition policy in a concentrated and globalized retail industry," Post-Print hal-02656654, HAL.
    • Handle: RePEc:hal:journl:hal-02656654
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-02656654
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    References listed on IDEAS

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    Cited by:

    1. Emek Basker & Shawn Klimek & Pham Hoang Van, 2012. "Supersize It: The Growth of Retail Chains and the Rise of the “Big‐Box” Store," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 21(3), pages 541-582, September.
    2. Özlem Bedre-Defolie & Stéphane Caprice, 2011. "Merger efficiency and welfare implications of buyer power," ESMT Research Working Papers ESMT-11-07, ESMT European School of Management and Technology.
    3. Heimeshoff, Ulrich & Klein, Gordon J., 2013. "Bargaining power and local heroes," DICE Discussion Papers 87, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).

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