The impact of retail mergers on food prices: evidence from France

This paper analyzes the impact of a merger in the French retail sector on food prices, using a consumer panel data. We perform a difference-in-differences analysis by comparing price changes in stores for which the local market structure is affected by the merger to unaffected stores. In addition, we empirically investigate economic forces behind the observed price changes. On average, we find that the merger significantly raised competitors' prices contemporaneously with merging firms' price increases. Further, we show that competitor prices increase more in local markets that experience larger structural changes in concentration and chain differentiation.


Issue Date:
2014
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/207812
Total Pages:
39
Series Statement:
14-02




 Record created 2017-04-01, last modified 2017-04-26

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