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Private Label Expansion and Supermarket Milk Prices

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Author Info
Alessandro Bonanno (University of Connecticut-Storrs, USA)
Rigoberto Lopez (University of Connecticut-Storrs, USA)
Abstract

This article investigates the impacts of private labels (PLs) on fluid milk prices and price differentials using 2,759 supermarket-level observations from 10 cities. Non-parametric results reveal that although PL milk prices decrease as PL milk shares expand, eventually the effect is to increase the prices of manufacturers' brands as well as the price gap between private labels and manufacturers' brands. Econometric results further reveal that supermarkets exert some degree of price discrimination through controlling the brands of milk sold.

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Publisher Info
Article provided by Berkeley Electronic Press in its journal Journal of Agricultural & Food Industrial Organization.

Volume (Year): 3 (2005)
Issue (Month): 1 ()
Pages: 1085-1085
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Handle: RePEc:bep:bjafio:v:3:y:2005:i:1:p:1085-1085

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Related research
Keywords: Private labels pricing food retailing milk

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References listed on IDEAS
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  1. Connor, John M & Peterson, Everett B, 1992. "Market-Structure Determinants of National Brand-Private Label Price Differences of Manufactured Food Products," Journal of Industrial Economics, Blackwell Publishing, vol. 40(2), pages 157-71, June. [Downloadable!] (restricted)
  2. Ronald Cotterill & William Putsis, 2000. "Market Share and Price Setting Behavior for Private Labels and National Brands," Review of Industrial Organization, Springer, vol. 17(1), pages 17-39, August. [Downloadable!] (restricted)
  3. Shepard, Andrea, 1991. "Price Discrimination and Retail Configuration," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 30-53, February. [Downloadable!] (restricted)
  4. Christophe Bontemps & Valerie Orozco & Vincent Réquillart & Audrey Trevisiol, 2005. "Price Effects of Private Label Development," Journal of Agricultural & Food Industrial Organization, Berkeley Electronic Press, vol. 3(1), pages 1086-1086. [Downloadable!] (restricted)
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  5. Vickers, John & Waterson, Michael, 1991. "Vertical Relationships: An Introduction," Journal of Industrial Economics, Blackwell Publishing, vol. 39(5), pages 445-50, September. [Downloadable!] (restricted)
  6. Adonis Yatchew, 1998. "Nonparametric Regression Techniques in Economics," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 669-721, June. [Downloadable!] (restricted)
  7. Mills, David E, 1995. "Why Retailers Sell Private Labels," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 4(3), pages 509-28, Fall.
  8. Connor, John M, 1994. "North America as Precursor of Changes in Western European Food-Purchasing Patterns," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 21(2), pages 155-73.
  9. Ward, Michael B, et al, 2002. " Effects of the Private-Label Invasion in Food Industries," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 84(4), pages 961-73, November. [Downloadable!] (restricted)
  10. William P. Putsis Jr. & Ronald W. Cotterill, 1999. "Share, price and category expenditure-geographic market effects and private labels," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 20(4), pages 175-187.
  11. Bontems, Philippe & Monier-Dilhan, Sylvette & Requillart, Vincent, 1999. "Strategic Effects of Private Labels," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 26(2), pages 147-65, June.
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