Estimating Market Power And Pricing Conduct For Private-Label And National Brands In A Product-Differentiated Oligopoly: The Case Of A Frozen Vegetable Market
AbstractThis paper develops two brand-level demand models, where prices are treated as endogenous, to estimate unilateral market power in a representative product-differentiated oligopolistic food market. The results are estimated using point-of-purchase scanner data and are used to quantify the impact of a private-label brand on the economic performance of national brands. Specifically, our study calculates demand parameter estimates and returns to retailer vertical coordination for the frozen vegetable marketÂ—the third largest private-label food and beverage category in the United States, after ice cream and carbonated beverages. Consistent with broader industry trends, empirical evidence suggests that the private-label brand maintained a slight competitive advantage over Birds Eye and Green Giant.
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Bibliographic InfoArticle provided by Food Distribution Research Society in its journal Journal of Food Distribution Research.
Volume (Year): 31 (2000)
Issue (Month): 02 (July)
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