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Local Price Competition: The Case of Swedish Food Retailers

Author

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  • Gullstrand Joakim

    (Lund University)

  • Jörgensen Christian

    (Lund University)

Abstract

Swedish food prices have been an issue many years resulting in a number of studies by the Swedish Competition Authority. This paper sheds new light on the competitive situation by using a detailed dataset covering all Swedish food retailers. The dataset allows an assessment of the importance of price competition as well as whether the market is local or global. The results are unambiguous, and suggest that competition is substantial, but that it wears off quickly. The implications are that a variation in competition may be an important explanation for price variations within Sweden, and that the disciplinary effect of new formats focusing on low prices may be substantial.

Suggested Citation

  • Gullstrand Joakim & Jörgensen Christian, 2012. "Local Price Competition: The Case of Swedish Food Retailers," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 10(1), pages 1-27, March.
    • Handle: RePEc:bpj:bjafio:v:10:y:2012:i:1:n:1
    DOI: 10.1515/1542-0485.1365
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    References listed on IDEAS

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    Cited by:

    1. Gullstrand, Joakim & Olofsdotter, Karin & Thede, Susanna, 2011. "Markups and export pricing," Working Papers 2011:37, Lund University, Department of Economics.
    2. Grashuis Jasper, 2020. "The Competitive Impact of Cooperatives on the Spot Market: A Spatial Analysis of Iowa Corn Prices," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 18(2), pages 1-11, November.
    3. Bondemark, Anders, 2020. "The relationship between accessibility and price – The case of Swedish food stores," Journal of Transport Geography, Elsevier, vol. 82(C).

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