Private Label Products as Experience Goods
AbstractIn 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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Bibliographic InfoArticle provided by De Gruyter in its journal Journal of Agricultural & Food Industrial Organization.
Volume (Year): 3 (2005)
Issue (Month): 2 (December)
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Web page: http://www.degruyter.com
Other versions of this item:
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
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- Jean Marie Viaene & Laixun Zhao, 2009.
"Tainted Food, Low-Quality Products and Trade,"
Discussion Paper Series
245, Research Institute for Economics & Business Administration, Kobe University.
- 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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