Food Retailers' Pricing and Marketing Strategies, with Implications for Producers

This paper examines grocery retailers' ability to influence prices charged to consumers and paid to suppliers. We discuss how retailer market power manifests itself in terms of pricing and marketing strategies by setting forth and offering evidence in support of eight "stylized facts" of retailer pricing and brand decisions. We argue that little, if any, of this behavior can be explained by a model of a competitive, price-taking retailer, but that most of the indicated behavior was also inconsistent with traditional models of market power. Finally, we discuss the impacts of aspects of this retailer behavior on the upstream farm sector.


Issue Date:
2006-10
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/10213
Published in:
Agricultural and Resource Economics Review, Volume 35, Number 2
Page range:
221-238
Total Pages:
18




 Record created 2017-04-01, last modified 2017-08-23

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