Competition Effects of Supermarket Services

This paper investigates the effect of in-store services on retail food prices, supermarket competition, and demand using fluid milk as a case study. It is shown that higher-service supermarkets charge higher milk prices essentially because of an increase in market power due to differentiation of service offering. Results show that different types of services impact milk prices differently, that upscale food-retailers face stronger competition in newer services, and that service competition results in a trade-off for the consumer between the attractiveness of the enhanced retail configuration and the increase in prices.


Subject(s):
Issue Date:
2007
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/9833
Total Pages:
36
JEL Codes:
L81; D40; L66
Series Statement:
Selected Paper 173178




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

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