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Retail price levels and concentration of wholesalers, retailers, and hypermarkets

Author

Listed:
  • Asplund, Marcus

    (Dept. of Economics, Stockholm School of Economics)

  • Friberg, Richard

    (Dept. of Economics, Stockholm School of Economics)

Abstract

This paper examines retail grocery price levels with a very large (unbalanced) panel of stores that operate in well-defined local markets. We explain price variation across grocery retailers by the concentration of wholesalers and retailers, and the market share of hypermarkets (and control for a number of store and region specific factors). Our most important result is that concentration at the wholesale level is an important determinant of retail prices. The price effect of retail concentration and hypermarket market share are statistically significant but small in economic terms.

Suggested Citation

  • Asplund, Marcus & Friberg, Richard, 1999. "Retail price levels and concentration of wholesalers, retailers, and hypermarkets," SSE/EFI Working Paper Series in Economics and Finance 318, Stockholm School of Economics.
  • Handle: RePEc:hhs:hastef:0318
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    Cited by:

    1. Lozano Navarro, Francisco-Javier, 2021. "Análisis de la concentración de mercado en la actividad inmobiliaria de Santiago [Market concentration of real estate in Santiago]," MPRA Paper 118262, University Library of Munich, Germany.
    2. Seres, Antal & Juhász, Anikó & Stauder, Márta, 2005. "A kereskedelmi koncentráció hatásának egyes kérdései [Some questions about the effect of trade concentration]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 774-794.

    More about this item

    Keywords

    Firm concentration; market structure; price competition; grocery retail; grocery wholesale;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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