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Chain-Store Pricing and the Structure of Retail Markets

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  • Matthew Olczak

Abstract

This paper examines competition between chain-stores and independent retailers in the UK retail opticians’ market. We demonstrate that the pricing policy adopted by chain-stores can determine the impact their entry has on independent retailers. Crucially, in this market the chain-store retailers set an identical national price across all local markets. Our results suggest that this pricing strategy lessens the detrimental effect competition from chain-stores has on independent retailers. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Matthew Olczak, 2015. "Chain-Store Pricing and the Structure of Retail Markets," Journal of Industry, Competition and Trade, Springer, vol. 15(2), pages 87-104, June.
    • Handle: RePEc:kap:jincot:v:15:y:2015:i:2:p:87-104
    DOI: 10.1007/s10842-014-0175-3
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    References listed on IDEAS

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    More about this item

    Keywords

    Retail competition; Chain-stores; National pricing; L11; L13;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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