Opportunities and Threats of concentration of retail market
Continuing concentration of retail chains with prevailing assortment of fast moving consumer goods is empirically visible tendency present in Europe, overall consolidation of chains on saturated markets in situation of reserved consumer optimism is inavoidable. Such circumstances enable changes including growing buying power of retail chains, on the other hands can start harsh price competition among remaining retailer. Quoted model of monopsony on market of production factor (goods bought for sale by retailer is considered as production factor) depicts effects of explotation of buying power. The other part - using Dobson´s model and other microecomic models of oligopsony illustrates examples of mutual effects differentiation (both of complex product of retailer and supplier), buying (transfer) price, rate of concentration of retail market on selling price and consumer excess.
Volume (Year): 2010 (2010)
Issue (Month): 1 ()
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- Dobson, Paul W & Waterson, Michael, 1997. "Countervailing Power and Consumer Prices," Economic Journal, Royal Economic Society, vol. 107(441), pages 418-30, March.
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