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Supermarket Prices and Price Differences: City, Firm, and Store-Level Determinants

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  • Kaufman, Phillip R.
  • Handy, Charles R.

Abstract

A nationwide survey of supermarket prices and other store, firm, and city characteristics found considerable diversity between cities and among stores and firms within cities in 1982. Store size, sales volume, store services, occupancy costs, market growth, and market entry contributed to price differences between supermarket firms. Differences in market concentration, firm market share, and firm labor costs were not significant determinants of supermarket prices. Considerable switching occurred in the price rankings of firms in most cities over the three survey periods.

Suggested Citation

  • Kaufman, Phillip R. & Handy, Charles R., 1989. "Supermarket Prices and Price Differences: City, Firm, and Store-Level Determinants," Technical Bulletins 257273, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerstb:257273
    DOI: 10.22004/ag.econ.257273
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    Cited by:

    1. Davis David E., 2010. "Prices, Promotions, and Supermarket Mergers," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 8(1), pages 1-27, November.
    2. Lashawn Richburg Hayes, 2000. "Do the Poor Pay More? An Empirical Investigation of Price Dispersion in Food Retailing," Working Papers 825, Princeton University, Department of Economics, Industrial Relations Section..
    3. Johan F.M. Swinnen & Anneleen Vandeplas, 2010. "Market power and rents in global supply chains," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 109-120, November.
    4. Kinsey, Jean D., 1998. "Concentration Of Ownership In Food Retailing: A Review Of The Evidence About Consumer Impact," Working Papers 14329, University of Minnesota, The Food Industry Center.
    5. King, Robert P. & Park, Timothy A., 2004. "Modeling Productivity In Supermarket Operations: Incorporating The Impacts Of Store Characteristics And Information Technologies," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(2), pages 1-14, July.
    6. Manchester, Alden C., 1992. "Rearranging The Economic Landscape: The Food Marketing Revolution, 1950-91," Agricultural Economic Reports 308263, United States Department of Agriculture, Economic Research Service.
    7. Padberg, Daniel I. & Knutson, Ronald D. & Jafri, S.H.A., 1993. "Retail Food Pricing: Horizontal And Vertical Determinants," Journal of Food Distribution Research, Food Distribution Research Society, vol. 24(1), pages 1-12, February.
    8. Lashawn Richburg Hayes, 2000. "Do the Poor Pay More? An Empirical Investigation of Price Dispersion in Food Retailing," Working Papers 825, Princeton University, Department of Economics, Industrial Relations Section..
    9. Roger Betancourt & Margaret Malanoski, 1999. "An Estimable Model of Supermarket Behavior: Prices, Distribution Services and Some Effects of Competition," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 26(1), pages 55-73, March.
    10. Alan Barkema & Mark Drabenstott & Nancy Novack, 2001. "The new U.S. meat industry," Economic Review, Federal Reserve Bank of Kansas City, vol. 86(Q II), pages 33-56.
    11. Kaufman, Phillip R. & Newton, Doris J. & Handy, Charles R., 1993. "Grocery Retailing Concentration in Metropolitan Areas, 1954-82," Technical Bulletins 157042, United States Department of Agriculture, Economic Research Service.
    12. Seres, Antal & Juhász, Anikó & Stauder, Márta, 2005. "A kereskedelmi koncentráció hatásának egyes kérdései [Some questions about the effect of trade concentration]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 774-794.
    13. Martens, Bobby J. & Dooley, Frank J. & Kim, Sounghun, 2006. "The Effect Of Entry By Wal-Mart Supercenters On Retail Grocery Concentration," 2006 Annual meeting, July 23-26, Long Beach, CA 21101, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Jean D. Kinsey, 1998. "Une revue de la littérature académique anglo-saxonne sur la grande distribution alimentaire," Économie rurale, Programme National Persée, vol. 245(1), pages 93-101.

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    Keywords

    Consumer/Household Economics;

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