Buyer Power and Product Innovation: Empirical Evidence from the German Food Sector
AbstractSubstantial increases in retail concentration (particularly in Europe) raise concerns about the welfare implications for consumers. In a formal model, we argue that retailer market power reduces upstream firms incentives to introduce new products. On the basis of a survey of firms in German food manufacturing, the results of a negative binomial regression model supports the proposition of a detrimental effect of retailer market power on product innovations. This effect is mitigated if manufacturing firms also have some market power (countervailing power). Innovations are positively related to firm?s market share in food manufacturing. --
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Bibliographic InfoPaper provided by Christian-Albrechts-University of Kiel, Department of Food Economics and Consumption Studies in its series FE Working Papers with number 0303.
Date of creation: 2003
Date of revision:
Retailer market power; product innovation; food manufacturing;
Find related papers by JEL classification:
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
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