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Competition Policy and Concentration of a Globalized Retail Industry

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Author Info

  • Stéphane Caprice
  • Vanessa von Schlippenbach

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.

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Bibliographic Info

Article provided by Duncker & Humblot, Berlin in its journal Applied Economics Quarterly.

Volume (Year): 54 (2008)
Issue (Month): 3 ()
Pages: 183-202

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Handle: RePEc:aeq:aeqaeq:v54_y2008_i3_q3_p183-202

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Web: http://www.duncker-humblot.de/index.php/zeitschriften/wirtschafts-undsozialwissenschaften/appliedeconomicsquarterly.html

Related research

Keywords: buyer power; retail regulation; globalization;

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Cited by:
  1. Heimeshoff, Ulrich & Klein, Gordon J., 2013. "Bargaining power and local heroes," DICE Discussion Papers 87, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  2. Özlem Bedre-Defolie & Stéphane Caprice, 2011. "Merger Efficiency and Welfare Implications of Buyer Power," Discussion Papers of DIW Berlin 1144, DIW Berlin, German Institute for Economic Research.

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