IDEAS home Printed from https://ideas.repec.org/a/bla/eurcho/v6y2007i3p22-29.html
   My bibliography  Save this article

Market Power in UK Food Retailing

Author

Listed:
  • Tim Lloyd
  • Wyn Morgan

Abstract

summary Deepening concentration in the food chain throughout Europe suggests antitrust authorities need to be ever vigilant to deter the use of market power. In this article, the authors highlight some of the problems that regulatory authorities face when collating evidence on the existence and use of market power in the food industry, not least the reticence of food suppliers to inform on supermarkets undertaking anti-competitive practices. The article argues that the systematic effects that anti-competitive practices have upon retail and producer prices offer economists the opportunity to detect the exercise of market power in publicly available aggregate data. Drawing on recent research, the article proposes a simple empirical test of the use of market power that is based on economic theory and complementary to extant sources of evidence. While the test does not measure the extent of market power, it does offer a tractable means of detecting its existence. The article summarises the findings from two recent academic papers in which the test has been applied. Results point to the existence of market power in all fresh food products that were assessed, corroborating both the conclusions of the first competition enquiry in 2000 and the recent decision to launch a further investigation into British supermarkets that is due to report in 2007. Copyright The Agricultural Ecomomics Society and the European Association of Agricultural Economists 2007.

Suggested Citation

  • Tim Lloyd & Wyn Morgan, 2007. "Market Power in UK Food Retailing," EuroChoices, The Agricultural Economics Society, vol. 6(3), pages 22-29, December.
  • Handle: RePEc:bla:eurcho:v:6:y:2007:i:3:p:22-29
    as

    Download full text from publisher

    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1746-692X.2007.00071.x
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Götz, Linde & von Cramon-Taubadel, Stephan & Kachel, Yael, 0. "Vertical Price Transmission in the International Fresh Fruit and Vegetable Supply Chain: Israeli Grapefruit Exports to the EU after Export Liberalisation," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 53.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:eurcho:v:6:y:2007:i:3:p:22-29. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/eaaeeea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.