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The Impact of Retail Mergers on Food Prices : Evidence from France

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Author Info

  • Marie-Laure Allain

    ()
    (Ecole Polytechnque, CREST)

  • Claire Chambolle

    ()
    (INRA, Ecole Polytechnique)

  • Stéphane Turolla

    ()
    (INRA)

  • Sofia B. Villas-Boas

    ()
    (University of California, Berkeley)

Abstract

This paper analyzes the impact of a merger in the French retail sector on food prices, using a consumer panel data. We perform a difference-in-differences analysis by comparing price changes in stores for which the local market structure is affected by the merger to unaffected stores. In addition, we empirically investigate economic forces behind the observed price changes. On average, we find that the merger significantly raised competitors' prices contemporaneously with merging firms' price increases. Further, we show that competitor prices increase more in local markets that experience larger structural changes in concentration and chain differentiation.

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Bibliographic Info

Paper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2013-18.

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Length: 38
Date of creation: Dec 2013
Date of revision:
Handle: RePEc:crs:wpaper:2013-18

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Keywords: Ex-post merger evaluation; Retail grocery sector; Difference-in-differences;

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References

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