Market Power in UK Food Retailing
Abstractsummary Deepening concentration in the food chain throughout Europe suggests antitrust authorities need to be ever vigilant to deter the use of market power. In this article, the authors highlight some of the problems that regulatory authorities face when collating evidence on the existence and use of market power in the food industry, not least the reticence of food suppliers to inform on supermarkets undertaking anti-competitive practices. The article argues that the systematic effects that anti-competitive practices have upon retail and producer prices offer economists the opportunity to detect the exercise of market power in publicly available aggregate data. Drawing on recent research, the article proposes a simple empirical test of the use of market power that is based on economic theory and complementary to extant sources of evidence. While the test does not measure the extent of market power, it does offer a tractable means of detecting its existence. The article summarises the findings from two recent academic papers in which the test has been applied. Results point to the existence of market power in all fresh food products that were assessed, corroborating both the conclusions of the first competition enquiry in 2000 and the recent decision to launch a further investigation into British supermarkets that is due to report in 2007. Copyright The Agricultural Ecomomics Society and the European Association of Agricultural Economists 2007.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by The Agricultural Economics Society in its journal EuroChoices.
Volume (Year): 6 (2007)
Issue (Month): 3 (December)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1478-0917
More information through EDIRC
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.