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The impact of retail mergers on food prices: evidence from France

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  • Marie-Laure Allain
  • Claire Chambolle
  • Stéphane Turolla
  • Sofia B. villas-boas

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 INRA UMR SMART in its series Working Papers SMART - LERECO with number 14-02.

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Length: 39 pages
Date of creation: 2014
Date of revision:
Handle: RePEc:rae:wpaper:201402

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Keywords: ex-post merger evaluation; retail grocery sector; difference-in-differences;

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