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Market Structure and Competition in Food Retail: Some Evidences from Brazil


  • Monterio, G.F.A.
  • Farina, Elizabeth Maria Mercier Querido
  • Nunes, R.


The paper analyzes competition among supermarkets in Brazil. In contrast to part of the economic literature which suggests that the fast growth of big supermarket chains would destroy independent, medium and small supermarkets, the paper argues that big supermarket chains can coexist with different formats of independent food retailing. As a result, competition in food retail is complex and cannot be described as a simple Darwinian process of market concentration. The analysis is divided in two parts. In the first part, the competition between hypermarkets and supermarkets is examined. Evidences for the district of Sao Paulo, Brazil, suggest that these retailers form separate markets. The second part is focused on neighborhood supermarkets. The results differ from the general belief that independent supermarkets establish higher prices in comparison to big chain supermarkets. The analysis brings to light the heterogeneity of the competitive fringe in the oligopoly model of Brazilian retailing.

Suggested Citation

  • Monterio, G.F.A. & Farina, Elizabeth Maria Mercier Querido & Nunes, R., 2008. "Market Structure and Competition in Food Retail: Some Evidences from Brazil," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44199, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae08:44199

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    References listed on IDEAS

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    5. Hamilton, James D, 1989. "A New Approach to the Economic Analysis of Nonstationary Time Series and the Business Cycle," Econometrica, Econometric Society, vol. 57(2), pages 357-384, March.
    6. Zacharias Psaradakis & Martin Sola & Fabio Spagnolo, 2004. "On Markov error-correction models, with an application to stock prices and dividends," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(1), pages 69-88.
    7. Kelvin Balcombe & Alastair Bailey & Jonathan Brooks, 2007. "Threshold Effects in Price Transmission: The Case of Brazilian Wheat, Maize, and Soya Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 308-323.
    8. M. Ben-Kaabia & José M. Gil, 2007. "Asymmetric price transmission in the Spanish lamb sector," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 34(1), pages 53-80, March.
    9. James D. Hamilton & Baldev Raj, 2002. "New directions in business cycle research and financial analysis," Empirical Economics, Springer, vol. 27(2), pages 149-162.
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    Food retail; Supermarkets; Differentiation; Agribusiness; Industrial Organization;

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