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Antitrust Analysis of Supermarket Retailing: Common Global Concerns that Play Out in Local Markets

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  • Cotterill, Ronald W.

Abstract

This paper reviews the basic antitrust standards for the supermarket industry including definition of product and geographic markets and the exercise of coordinated and unilateral market power. It surveys the structure-conduct-performance and the New Empirical Industrial Organization literature to highlight alternative tests for supermarket power. The focus is a supermarket chain's ability to exercise buyer as well as seller power. Recent research on vertical pricing topics including noncompetitive pricing games, double marginalization, private labels, vertical foreclosure, vertical price leadership and price transmission expand the analysis to market channel pricing issues. The availability of comprehensive scanner data, new economic theory and extensive computing power now allows one to estimate food manufacturer and supermarket retailer pricing conduct in the wholesale market jointly with retailer conduct in the consumer market.

Suggested Citation

  • Cotterill, Ronald W., 2005. "Antitrust Analysis of Supermarket Retailing: Common Global Concerns that Play Out in Local Markets," Research Reports 25184, University of Connecticut, Food Marketing Policy Center.
    • Handle: RePEc:ags:uconnr:25184
    DOI: 10.22004/ag.econ.25184
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    1. Cotterill, Ronald W & Putsis, William P, Jr & Dhar, Ravi, 2000. "Assessing the Competitive Interaction between Private Labels and National Brands," The Journal of Business, University of Chicago Press, vol. 73(1), pages 109-137, January.
    2. Cotterill, Ronald W & Haller, Lawrence E, 1992. "Barrier and Queue Effects: A Study of Leading U.S. Supermarket Chain Entry Patterns," Journal of Industrial Economics, Wiley Blackwell, vol. 40(4), pages 427-440, December.
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    5. Cotterill, Ronald W., 2003. "The Impact of the Northeastern Dairy Compact on New England Consumers: A Report from the Milk Policy Wars," Research Reports 25171, University of Connecticut, Food Marketing Policy Center.
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    10. Ronald W. Cotterill, 1999. "An Antitrust Economic Analysis of the Proposed Acquisition of Supermarkets General Holdings Corporation be Ahold Acquisition Inc," Food Marketing Policy Center Research Reports 046, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
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    Cited by:

    1. Smith, Rhonda L., 2006. "The Australian grocery industry: a competition perspective," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(1), pages 1-18, March.
    2. Rhonda L. Smith, 2006. "The Australian grocery industry: a competition perspective," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(1), pages 33-50, March.

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    Agribusiness; Industrial Organization;

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