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Private Labels, Price Rivalry, and Public Policy

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  • Gabrielsen, Tommy Staahl
  • Sørgard, Lars

Abstract

The article examines how the existence of a retailer owned brand, private label, aspects the price setting of a national brand. We …nd that the potential for a private label introduction may lead to price concessions from the national brand producer, but that actual private label introduction as such may very well lead to higher retail prices on national brands. We argue that this may have important implications for the interpretation of empirical results and the public policy towards national brands.

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Bibliographic Info

Paper provided by Department of Economics, UC Santa Barbara in its series University of California at Santa Barbara, Economics Working Paper Series with number qt8wh900ks.

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Date of creation: 19 Jul 2000
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Handle: RePEc:cdl:ucsbec:qt8wh900ks

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Keywords: Private Labels; Price Rivalry; Public Policy;

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References

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  18. Bergès-Sennou Fabian & Bontems Philippe & Réquillart Vincent, 2004. "Economics of Private Labels: A Survey of Literature," Journal of Agricultural & Food Industrial Organization, De Gruyter, De Gruyter, vol. 2(1), pages 1-25, February.
  19. Narasimhan, Chakravarthi & Wilcox, Ronald T, 1998. "Private Labels and the Channel Relationship: A Cross-Category Analysis," The Journal of Business, University of Chicago Press, University of Chicago Press, vol. 71(4), pages 573-600, October.
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Citations

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Cited by:
  1. Bontemps, Christophe & Orozco, Valérie & Réquillart, Vincent, 2008. "Private Labels, National Brands and Food Prices," IDEI Working Papers, Institut d'Économie Industrielle (IDEI), Toulouse 402, Institut d'Économie Industrielle (IDEI), Toulouse.
  2. Emily Blanchard & Tatyana Chesnokova & Gerald Willmann, 2013. "Private Labels and International Trade: Trading Variety for Volume," CESifo Working Paper Series, CESifo Group Munich 4133, CESifo Group Munich.
  3. Bontemps, C. & Orozco, V. & Réquillart, V., 2005. "Confirming the price effects of private labels development," Economics Working Paper Archive (Toulouse), French Institute for Agronomy Research (INRA), Economics Laboratory in Toulouse (ESR Toulouse) 200506, French Institute for Agronomy Research (INRA), Economics Laboratory in Toulouse (ESR Toulouse).
  4. Bergès, Fabian & Bouamra-Mechemache, Zohra, 2009. "Is Producing a Private Label Counterproductive for a Branded Manufacturer?," TSE Working Papers, Toulouse School of Economics (TSE) 09-130, Toulouse School of Economics (TSE).
  5. José J. Sempere Monerris & Rafael Moner Colonques & Amparo Urbano, 2007. "Store Vs. National Brands: A Product Line Mix Puzzle," Working Papers. Serie AD, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2007-10, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  6. Fabian Bergès-Sennou & Philippe Bontems & Vincent Réquillart, 2009. "L’impact économique du développement des marques de distributeurs," Économie et Prévision, Programme National Persée, Programme National Persée, vol. 189(3), pages 41-56.
  7. Daniel Hassan & Sylvette Monier-Dilhan, 2006. "National brands and store brands: Competition through public quality labels," Agribusiness, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 22(1), pages 21-30.
  8. MANEZ, Juan A. & MONER-COLONQUES, Rafael & SEMPERE-MONERRIS, José J. & URBANO, Amparo, 2011. "Price differentials among brands in retail distribution: product quality and service quality," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 2011017, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  9. Paolo Sckokai & Claudio Soregaroli, 2008. "Impact of private label development across retail formats: Evidences from the Italian dairy market," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, INRA Department of Economics, vol. 87(2), pages 27-47.
  10. Sckokai, Paolo & Soregaroli, Claudio, 2006. "Do consumers benefit from private label development?," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece, European Association of Agricultural Economists 10068, European Association of Agricultural Economists.
  11. Bontemps, Christophe & Orozco, Valérie & Réquillart, Vincent & Trévisiol, Audrey, 2004. "Price Effects of Private Labels Development," IDEI Working Papers, Institut d'Économie Industrielle (IDEI), Toulouse 299, Institut d'Économie Industrielle (IDEI), Toulouse.
  12. Bergès, Fabian & Bontems, Philippe & Réquillart, Vincent, 2003. "A survey on the Economic Impact of the Development of Private Labels," IDEI Working Papers, Institut d'Économie Industrielle (IDEI), Toulouse 236, Institut d'Économie Industrielle (IDEI), Toulouse.
  13. Bonanno Alessandro & Lopez Rigoberto A., 2005. "Private Label Expansion and Supermarket Milk Prices," Journal of Agricultural & Food Industrial Organization, De Gruyter, De Gruyter, vol. 3(1), pages 1-18, February.
  14. Daunfeldt, Sven-Olov & Orth, Matilda & Rudholm, Niklas, 2008. "Does the Quality of Store Brands Affect the Number of National Brand Suppliers?," HUI Working Papers, HUI Research 18, HUI Research.
  15. Johansen, Bjørn Olav, 2012. "Private Labels, Rent Shifting And Consumer Welfare," Working Papers in Economics, University of Bergen, Department of Economics 02/12, University of Bergen, Department of Economics.

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