IDEAS home Printed from https://ideas.repec.org/a/prg/jnleam/v2010y2010i1id91.html

Opportunities and Threats of concentration of retail market

Author

Listed:
  • 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, Prague University of Economics and Business, vol. 2010(1).
    • Handle: RePEc:prg:jnleam:v:2010:y:2010:i:1:id:91
    as

    Download full text from publisher

    File URL: http://www.vse.cz/eam/download.php?jnl=eam&pdf=91.pdf
    Download Restriction: free of charge
    File URL: http://www.vse.cz/eam/91
    Download Restriction: free of charge
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Dobson, Paul W & Waterson, Michael, 1997. "Countervailing Power and Consumer Prices," Economic Journal, Royal Economic Society, vol. 107(441), pages 418-430, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

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

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Björnerstedt, Jonas & Stennek, Johan, 2001. "Bilateral Oligopoly," Working Paper Series 555, Research Institute of Industrial Economics.
    2. Can Erutku, 2005. "Buying power and strategic interactions," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(4), pages 1160-1172, November.
    3. Daniel Herold, 2017. "Information Exchange in Retail Markets with Uncertainty about Downstream Costs," MAGKS Papers on Economics 201750, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    4. Johan Swinnen & Alessandro Olper & Senne Vandevelde, 2021. "From unfair prices to unfair trading practices: Political economy, value chains and 21st century agri‐food policy," Agricultural Economics, International Association of Agricultural Economists, vol. 52(5), pages 771-788, September.
    5. Walter Beckert, 2018. "An Empirical Analysis of Countervailing Power in Business-to-Business Bargaining," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(3), pages 369-402, May.
    6. Goldberg, Linda & Tille, Cédric, 2013. "A bargaining theory of trade invoicing and pricing," Kiel Working Papers 1839, Kiel Institute for the World Economy (IfW Kiel).
    7. Ismail Saglam, 2023. "Centralized bargaining with pre‐donation in a vertically related industry," Manchester School, University of Manchester, vol. 91(3), pages 233-259, June.
    8. Luke Garrod & Tien-Der Han & James Harvey & Matthew Olczak, 2025. "Cartel Damages Claims, Passing-On, and Passing-Back," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 66(3), pages 261-292, March.
    9. Filippo Vergara Caffarelli, 2007. "Merge and Compete: Strategic Incentives for Vertical Integration," Rivista di Politica Economica, SIPI Spa, vol. 97(5), pages 203-244, September.
    10. David Mills, 2013. "Countervailing Power and Chain Stores," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 42(3), pages 281-295, May.
    11. Milliou, Chrysovalantou & Petrakis, Emmanuel, 2007. "Upstream horizontal mergers, vertical contracts, and bargaining," International Journal of Industrial Organization, Elsevier, vol. 25(5), pages 963-987, October.
    12. Sascha A. Weber & Sven M. Anders, 2007. "Price rigidity and market power in German retailing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(7), pages 737-749.
    13. Vettas, Nikolaos & Biglaiser, Gary, 2004. "Dynamic Price Competition with Capacity Constraints and Strategic Buyers," CEPR Discussion Papers 4315, C.E.P.R. Discussion Papers.
    14. Hans-Theo Normann & Bradley J. Ruffle & Christopher M. Snyder, 2007. "Do buyer-size discounts depend on the curvature of the surplus function? Experimental tests of bargaining models," RAND Journal of Economics, RAND Corporation, vol. 38(3), pages 747-767, September.
    15. Liang Guo & Ganesh Iyer, 2013. "Multilateral Bargaining and Downstream Competition," Marketing Science, INFORMS, vol. 32(3), pages 411-430, May.
    16. Symeonidis, George, 2010. "Downstream merger and welfare in a bilateral oligopoly," International Journal of Industrial Organization, Elsevier, vol. 28(3), pages 230-243, May.
    17. Inderst, Roman & Wey, Christian, 2003. "Bargaining, Mergers, and Technology Choice in Bilaterally Oligopolistic Industries," RAND Journal of Economics, The RAND Corporation, vol. 34(1), pages 1-19, Spring.
    18. Koichi Yonezawa & Miguel I Gómez & Timothy J Richards, 2020. "The Robinson–Patman Act and Vertical Relationships," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 329-352, January.
    19. Marie-Laure Allain & Saïd Souam, 2004. "Concentration horizontale et relations verticales," Working Papers hal-00242914, HAL.
    20. Johansen, Bjørn Olav, 2012. "The Buyer Power Of Multiproduct Retailers: Competition With One-Stop Shopping," Working Papers in Economics 03/12, University of Bergen, Department of Economics.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnleam:v:2010:y:2010:i:1:id:91. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.