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Opportunities and Threats of concentration of retail market

Author

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  • Jana Vrbová

Abstract

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.

Suggested Citation

  • Jana Vrbová, 2010. "Opportunities and Threats of concentration of retail market," Ekonomika a Management, University of Economics, Prague, vol. 2010(1).
  • Handle: RePEc:prg:jnleam:v:2010:y:2010:i:1:id:91
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    References listed on IDEAS

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    1. Dobson, Paul W & Waterson, Michael, 1997. "Countervailing Power and Consumer Prices," Economic Journal, Royal Economic Society, vol. 107(441), pages 418-430, March.
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    Cited by:

    1. Jindřich Špička, 2016. "Market Concentration and Profitability of the Grocery Retailers in Central Europe," Central European Business Review, University of Economics, Prague, vol. 2016(3), pages 5-24.

    More about this item

    Keywords

    obchodní řetězce; vyjednávací síla obchodních řetězců; koncentrace; diferenciace; společenský užitek; spotřebitelský užitek; retail chains; concentration of retail market; negotiation power (buying power) of retail chains; consumer excess;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D60 - Microeconomics - - Welfare Economics - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

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