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Market power analysis in the retail food industry: a survey of methods

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  • Digal, Larry N.
  • Ahmadi-Esfahani, Fredoun Z.

Abstract

The present paper surveys various methods used to analyse market power in the retail food industry. The strengths and weaknesses of these approaches are explored and a review of the issues in using New Empirical Industrial Organization (NEIO) and time-series models is provided. The absence of a theory underlying time-series models is highlighted and a review of some theoretical models in retailing is presented. The impact of imperfect competition in the food processing sector on retailing is also examined. It is argued that a combination of the approaches that minimises the weaknesses and builds on the strengths of single approaches may prove more promising for examining non-competitive behaviour.

Suggested Citation

  • Digal, Larry N. & Ahmadi-Esfahani, Fredoun Z., 2002. "Market power analysis in the retail food industry: a survey of methods," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(4), pages 1-26.
    • Handle: RePEc:ags:aareaj:118596
    DOI: 10.22004/ag.econ.118596
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    Cited by:

    1. Chanjin Chung & Em Tostão, 2012. "Effects of horizontal consolidation under bilateral imperfect competition between processors and retailers," Applied Economics, Taylor & Francis Journals, vol. 44(26), pages 3379-3389, September.
    2. Maurizio Aragrande & Mauro Bruni & Alberico Loi & Roberto Esposti, 2017. "The effect of EU 2006 sugar regime reform on vertical price transmission," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-20, December.
    3. Rizwan Abbas & Gehad Abdullah Amran & Irshad Hussain & Shengjun Ma, 2022. "A Soft Computing View for the Scientific Categorization of Vegetable Supply Chain Issues," Logistics, MDPI, vol. 6(3), pages 1-17, June.
    4. Fanzo, Jessica & Haddad, Lawrence & Schneider, Kate R. & Béné, Christophe & Covic, Namukolo M. & Guarin, Alejandro & Herforth, Anna W. & Herrero, Mario & Sumaila, U. Rashid & Aburto, Nancy J. & Amuyun, 2021. "Viewpoint: Rigorous monitoring is necessary to guide food system transformation in the countdown to the 2030 global goals," Food Policy, Elsevier, vol. 104(C).
    5. Weiss, Christoph, 2020. "Preisbildung bei unvollkommener Konkurrenz," IAMO Discussion Papers 305467, Institute of Agricultural Development in Transition Economies (IAMO).
    6. Federica Di Marcantonio & Pavel Ciaian & Vicente Castellanos, 2018. "Unfair trading practices in the dairy farm sector: Evidence from selected EU regions," JRC Research Reports JRC112770, Joint Research Centre.
    7. Daniele Cavicchioli & Luca Cacchiarelli & Alessandro Sorrentino & Roberto Pretolani, 2022. "Should We Cry over the Spilt Milk? Market Power and Structural Change along Dairy Supply Chains in EU Countries," Sustainability, MDPI, vol. 14(8), pages 1-18, April.
    8. Huashu Wang & Tian Xia & Zhengfei Guan, 2019. "Market power and food safety in the China pork industry," Agribusiness, John Wiley & Sons, Ltd., vol. 35(1), pages 97-113, January.
    9. Daniele Cavicchioli, 2018. "Detecting Market Power Along Food Supply Chains: Evidence and Methodological Insights from the Fluid Milk Sector in Italy," Agriculture, MDPI, vol. 8(12), pages 1-22, December.
    10. Hilli, Alastair & Griffith, Garry, 2022. "Market Power in the Domestic Fresh Meat Market," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 30(8), November.
    11. Chanjin Chung & Youg Sook Eom & Byung Woo Yang, 2014. "Optimal Generic Advertising under Bilateral Imperfect Competition between Processors and Retailers," Agribusiness, John Wiley & Sons, Ltd., vol. 30(4), pages 438-455, September.
    12. Iain Fraser, 2005. "Microeconometric analysis of wine grape supply contracts in Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), pages 23-46, March.
    13. Di Marcantonio, F. & Ciaian, P. & Castellanos, V., 2018. "Unfair trading practices in the dairy farm sector: Insights from an EU field survey," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275886, International Association of Agricultural Economists.
    14. Sven Anders, 2008. "Imperfect Competition in German Food Retailing: Evidence from State Level Data," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 36(4), pages 441-454, December.
    15. Rahkovsky Ilya & Volpe Richard, 2018. "Structure and Food Price Inflation," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 16(1), pages 1-16, January.
    16. Chunliang Guo & Jiawen Zhang & Na Li, 2024. "A New Perspective on Strategic Choices for the Survival and Development of Energy Enterprises: An Analysis of Market Power, Innovation Strategy, and Sustainable Development of Major Multinational Oil ," Sustainability, MDPI, vol. 16(7), pages 1-20, April.
    17. Mohammad Omrani & Mohammad Nabi Shahiki Tash & Ahmad Akbari, 2017. "Price Transmission in Iranian Wholesale-retail Meat Market: Implications for Market Power," International Journal of Economics and Financial Issues, Econjournals, vol. 7(3), pages 594-601.
    18. Shyamal K. Chowdhury & Ashok Gulati & E. Gumbira-Sa'id, 2005. "The Rise of Supermarkets and Vertical Relationships in the Indonesian Food Value Chain: Causes and Consequences," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 2(1&2), pages 39-48, December.
    19. Christopher J. O'Donnell & Garry R. Griffith & John J. Nightingale & Roley R. Piggott, 2007. "Testing for market power in the Australian grains and oilseeds industries," Agribusiness, John Wiley & Sons, Ltd., vol. 23(3), pages 349-376.
    20. Daniele CAVICCHIOLI, 2013. "Detecting market power along food supply chains: evidence from the fluid milk sector in Italy," Departmental Working Papers 2013-01, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano, revised 30 Jan 2013.
    21. Klaus Salhofer & Christoph Tribl & Franz Sinabell, 2012. "Market power in Austrian food retailing: the case of milk products," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(1), pages 109-122, February.
    22. repec:zbw:iamodp:305467 is not listed on IDEAS

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