Confirming the Price Effects of Private Labels Development
AbstractWe study the price response of national brands to the development of private labels. We use monthly data from a consumer survey reporting their purchases for 218 food products. We show that when private labels have a significant effect on national brands prices (144 cases over 218), that is positive (89%). We also show that the increase in the prices of national brand products is explained by a strategy of product differentiation. Finally, price reaction of national brands differs with the type of private labels they are facing. This paper confirms, on a larger number of products, previous empirical results.
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Bibliographic InfoPaper provided by Institut d'Économie Industrielle (IDEI), Toulouse in its series IDEI Working Papers with number 367.
Date of creation: Jul 2005
Date of revision:
Publication status: Published in Review of Industrial Organization, vol.�33, n°1, août 2008, p.�1-22.
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Other versions of this item:
- Bontemps, C. & Orozco, V. & Réquillart, V., 2005. "Confirming the price effects of private labels development," Economics Working Paper Archive (Toulouse) 200506, French Institute for Agronomy Research (INRA), Economics Laboratory in Toulouse (ESR Toulouse).
- Bontemps, Christophe & Orozco, Valerie & Requillart, Vincent, 2005. "Confirming the Price Effects of Private Labels Development," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24735, European Association of Agricultural Economists.
- L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- D40 - Microeconomics - - Market Structure and Pricing - - - General
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