Price and promotion effects of supermarket mergers
AbstractI use a unique data set of retail food prices to analyze mergers between supermarket chains. The data allow for an examination of the effects of mergers on prices, the frequency of promotions, and the depth of promotions. I find that increases in a chain’s share of the total US food sales are associated with price decreases, suggesting that supermarkets enjoy economies of scale and/or benefit from an improved bargaining position relative to their suppliers after a merger. I also find that mergers are associated with decreases in the frequency and depth of price-promotions.
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Bibliographic InfoPaper provided by South Dakota State University, Department of Economics in its series SDSU Working Papers in Progress with number 12009.
Length: 33 pages
Date of creation: Sep 2009
Date of revision: Jun 2010
Publication status: Published in Journal of Food and Agricultural Industrial Organization, Vol. 8 (2010) Prices, Promotions, and Supermarket Mergers
Food prices; supermarket; merger; price discrimination;
Find related papers by JEL classification:
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
- D4 - Microeconomics - - Market Structure and Pricing
This paper has been announced in the following NEP Reports:
- NEP-AGR-2009-09-26 (Agricultural Economics)
- NEP-ALL-2009-09-26 (All new papers)
- NEP-COM-2009-09-26 (Industrial Competition)
- NEP-IND-2009-09-26 (Industrial Organization)
- NEP-MKT-2009-09-26 (Marketing)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Supermarkets are merging again. What does that mean for your grocery bill?
by ? in Ezra Klein on 2013-07-29 00:44:00
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