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Retail price dynamics and retailer heterogeneity: UK evidence

Author

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  • Lloyd, T.A.
  • McCorriston, S.
  • Morgan, C.W.
  • Poen, E.
  • Zgovu, E.

Abstract

We examine retailer heterogeneity in price adjustment in UK supermarkets. Considerable variation in the price change frequency of identically bar-coded products among retail chains is found. Decomposition analysis suggests that price adjustment is evenly split between sales and reference prices with substantive variation across retailers.

Suggested Citation

  • Lloyd, T.A. & McCorriston, S. & Morgan, C.W. & Poen, E. & Zgovu, E., 2014. "Retail price dynamics and retailer heterogeneity: UK evidence," Economics Letters, Elsevier, vol. 124(3), pages 434-438.
    • Handle: RePEc:eee:ecolet:v:124:y:2014:i:3:p:434-438
    DOI: 10.1016/j.econlet.2014.06.032
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    References listed on IDEAS

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    8. Berka, Martin & Devereux, Michael B. & Rudolph, Thomas, 2011. "Price setting in a leading Swiss online supermarket," Working Paper Series 18597, Victoria University of Wellington, School of Economics and Finance.
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    Citations

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    Cited by:

    1. Durevall, Dick, 2017. "Cost Pass-Through in the Swedish Coffee Market," Working Papers in Economics 697, University of Gothenburg, Department of Economics.
    2. Hao Lan & Tim A. Lloyd & Steve McCorriston & Christopher Wyn Morgan, 2022. "Retailer heterogeneity and price transmission," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(5), pages 1679-1700, October.
    3. Sang-Hyun Kim & Hao Lan & Paul W Dobson, 2021. "Identifying price-leadership structures in oligopoly," Oxford Economic Papers, Oxford University Press, vol. 73(1), pages 350-370.
    4. Holzer, Patrick Sebastian, 2020. "The effect of time-varying factors on promotional activity in the German milk market," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    5. Hao Lan & Tim Lloyd & Wyn Morgan & Paul W. Dobson, 2022. "Are food price promotions predictable? The hazard function of supermarket discounts," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 64-85, February.
    6. Dengjun Zhang & Geir Sogn-Grundvåg & Frank Asche & James A. Young, 2018. "Eco-Labeling and Retailer Pricing Strategies: The U.K. Haddock Market," Sustainability, MDPI, vol. 10(5), pages 1-13, May.
    7. Hao Lan & Paul W. Dobson, 2017. "Healthy Competition to Support Healthy Eating? An Investigation of Fruit and Vegetable Pricing in UK Supermarkets," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 881-900, September.
    8. Durevall, Dick, 2017. "Cost Pass-Through in the Swedish Coffee Market," HUI Working Papers 120, HUI Research.
    9. Tim Lloyd, 2017. "Forty Years of Price Transmission Research in the Food Industry: Insights, Challenges and Prospects," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 3-21, February.

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    Keywords

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    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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