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Private Label Products as Experience Goods

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Author Info

  • Bergès-Sennou Fabian

    (INRA, University of Toulouse, France)

  • Waterson Michael

    (University of Warwick, UK)

Abstract

In Europe, food retailing has become more concentrated and private label goods have spread over the last 40 years. They are now a key element of retailers' shelf offer. Using a model in which consumers become informed about the good's quality only in period two, we examine what determines the presence or absence of private label experience goods in supermarkets, taking into account the retailer's reputation commitment involved. Our most novel result is that for products purchased infrequently, introducing a reputable private label is unsustainable. However, more retailer bargaining power increases the likelihood of a private label good being marketed.

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File URL: http://www.degruyter.com/view/j/jafio.2005.3.2/jafio.2005.3.2.1121/jafio.2005.3.2.1121.xml?format=INT
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Bibliographic Info

Article provided by De Gruyter in its journal Journal of Agricultural & Food Industrial Organization.

Volume (Year): 3 (2005)
Issue (Month): 2 (December)
Pages: 1-19

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Handle: RePEc:bpj:bjafio:v:3:y:2005:i:2:n:9

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Web page: http://www.degruyter.com

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Cited by:
  1. Jean-Marie Viaene & Laixun Zhao, 2010. "Tainted Food, Low-Quality Products and Trade," Tinbergen Institute Discussion Papers 10-006/2, Tinbergen Institute.
  2. Jean-Marie Viaene & Laixun Zhao, 2010. "Tainted Food, Low-Quality Products and Trade," Tinbergen Institute Discussion Papers 10-006/2, Tinbergen Institute.

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