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Local Price Competition: The Case of Swedish Food Retailers

Author

Listed:
  • Gullstrand Joakim

    (Lund University)

  • Jörgensen Christian

    (Lund University)

Abstract

Swedish food prices have been an issue many years resulting in a number of studies by the Swedish Competition Authority. This paper sheds new light on the competitive situation by using a detailed dataset covering all Swedish food retailers. The dataset allows an assessment of the importance of price competition as well as whether the market is local or global. The results are unambiguous, and suggest that competition is substantial, but that it wears off quickly. The implications are that a variation in competition may be an important explanation for price variations within Sweden, and that the disciplinary effect of new formats focusing on low prices may be substantial.

Suggested Citation

  • Gullstrand Joakim & Jörgensen Christian, 2012. "Local Price Competition: The Case of Swedish Food Retailers," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 10(1), pages 1-27, March.
    • Handle: RePEc:bpj:bjafio:v:10:y:2012:i:1:n:1
    DOI: 10.1515/1542-0485.1365
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    References listed on IDEAS

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    7. Cotterill, Ronald W, 1986. "Market Power in the Retail Food Industry: Evidence from Vermont," The Review of Economics and Statistics, MIT Press, vol. 68(3), pages 379-386, August.
    8. Kathleen Cleeren & Frank Verboven & Marnik G. Dekimpe & Katrijn Gielens, 2010. "Intra- and Interformat Competition Among Discounters and Supermarkets," Marketing Science, INFORMS, vol. 29(3), pages 456-473, 05-06.
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    Cited by:

    1. Grashuis Jasper, 2020. "The Competitive Impact of Cooperatives on the Spot Market: A Spatial Analysis of Iowa Corn Prices," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 18(2), pages 1-11, November.
    2. Gullstrand, Joakim & Olofsdotter, Karin & Thede, Susanna, 2011. "Markups and export pricing," Working Papers 2011:37, Lund University, Department of Economics.
    3. Bondemark, Anders, 2020. "The relationship between accessibility and price – The case of Swedish food stores," Journal of Transport Geography, Elsevier, vol. 82(C).

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