IDEAS home Printed from https://ideas.repec.org/p/bic/opaper/3.html
   My bibliography  Save this paper

Competition in the Latvian and Baltic Grocery Retail Markets

Author

Listed:
  • Alf Vanags

    (Baltic International Centre for Economic Policy Studies (BICEPS))

  • Morten Hansen

    (Stockholm School of Economics in Riga (SSE Riga))

Abstract

This report analyzes concentration in the grocery retail market in the three Baltic countries: Estonia, Latvia and Lithuania. The markets (including some comparator Eastern and Western European markets) are analyzed using two standard measures: the Herfindahl Hirschman Index and the four firm concentration ratio. By applying a standard classification as used, for example by the US Department of Justice, the analysis reveals that the Latvian grocery retail market is competitive, the Estonian moderately concentrated, and the Lithuanian market highly concentrated. Given this observation, it is surprising that Latvia, where the grocery retail market is the most competitive (out of the three Baltic countries), is the country where further regulatory measures against the grocery retailers have been discussed the most.

Suggested Citation

  • Alf Vanags & Morten Hansen, 2007. "Competition in the Latvian and Baltic Grocery Retail Markets," SSE Riga/BICEPS Occasional Papers 3, Baltic International Centre for Economic Policy Studies (BICEPS);Stockholm School of Economics in Riga (SSE Riga).
    • Handle: RePEc:bic:opaper:3
    as

    Download full text from publisher

    File URL: https://biceps.org/wp-content/uploads/2022/02/occasionalpaperno3.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Barro, Robert J & Gordon, David B, 1983. "A Positive Theory of Monetary Policy in a Natural Rate Model," Journal of Political Economy, University of Chicago Press, vol. 91(4), pages 589-610, August.
    2. Katharine S. Neiss, 2001. "The markup and inflation: evidence in OECD countries," Canadian Journal of Economics, Canadian Economics Association, vol. 34(2), pages 570-587, May.
    3. Katharine S. Neiss, 2001. "The markup and inflation: evidence in OECD countries," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 34(2), pages 570-587, May.
    4. Chen, Zhiqi, 2003. "Dominant Retailers and the Countervailing-Power Hypothesis," RAND Journal of Economics, The RAND Corporation, vol. 34(4), pages 612-625, Winter.
    5. Dobson, Paul W & Waterson, Michael, 1997. "Countervailing Power and Consumer Prices," Economic Journal, Royal Economic Society, vol. 107(441), pages 418-430, March.
    6. Paul Cavelaars, 2003. "Does Competition Enhancement Have Permanent Inflation Effects?," Kyklos, Wiley Blackwell, vol. 56(1), pages 69-94, February.
    7. Przybyla, Marcin & Roma, Moreno, 2005. "Does product market competition reduce inflation? Evidence from EU countries and sectors," Working Paper Series 453, European Central Bank.
    8. von Ungern-Sternberg, Thomas, 1996. "Countervailing power revisited," International Journal of Industrial Organization, Elsevier, vol. 14(4), pages 507-519, June.
    9. Paul Dobson & Michael Waterson, 1999. "Retailer power: recent developments and policy implications," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 14(28), pages 134-164.
    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. Zuzana Smidova, 2015. "Policy areas for increasing productivity in Latvia," OECD Economics Department Working Papers 1255, OECD Publishing.

    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. Emna Trabelsi, 2016. "Transparency on inflation of OECD countries? An Application of LSDVC Estimator on a dynamic Panel Model," Economics Bulletin, AccessEcon, vol. 36(2), pages 1095-1126.
    2. Mahir Binici & Yin-Wong Cheung & Kon S. Lai, 2011. "Trade Openness, Market Competition, and Inflation: Some Sectoral Evidence from OECD Countries," CESifo Working Paper Series 3690, CESifo.
    3. Battigalli, Pierpaolo & Fumagalli, Chiara & Polo, Michele, 2007. "Buyer power and quality improvements," Research in Economics, Elsevier, vol. 61(2), pages 45-61, June.
    4. Inderst, Roman & Wey, Christian, 2007. "Buyer power and supplier incentives," European Economic Review, Elsevier, vol. 51(3), pages 647-667, April.
    5. Ad van Riet & Moreno Roma, 2006. "Competition, productivity and prices in the euro area services sector," Occasional Paper Series 44, European Central Bank.
    6. Andre Jungmittag, 2018. "The Direct and Indirect Effects of Product Market Regulations in the Retail Trade Sector," JRC Research Reports JRC112222, Joint Research Centre (Seville site).
    7. Chiara Fumagalli & Massimo Motta, 2008. "Buyers’ Miscoordination, Entry and Downstream Competition," Economic Journal, Royal Economic Society, vol. 118(531), pages 1196-1222, August.
    8. Fahim Marhubi, 2023. "Impact of Gender Discrimination Laws on Inflation: Evidence from Panel Data," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 29(3), pages 99-109, August.
    9. Calzada, Joan & Diaz-Serrano, Luis, 2023. "Conflicting national policies: The creation of the euro and the rebalancing of telecommunications prices," Telecommunications Policy, Elsevier, vol. 47(1).
    10. Emanuela Ciapanna & Concetta Rondinelli, 2011. "Retail sector concentration and price dynamics in the euro area: a regional analysis," Questioni di Economia e Finanza (Occasional Papers) 107, Bank of Italy, Economic Research and International Relations Area.
    11. Bucci, Alberto & Parello, Carmelo Pierpaolo, 2009. "Horizontal innovation-based growth and product market competition," Economic Modelling, Elsevier, vol. 26(1), pages 213-221, January.
    12. Monica Correa Lopez & Agustin Garcia Serrador & Ana Cristina Mingorance, 2010. "Product Market Competition and Inflation Dynamics: Evidence from a Panel of OECD Countries," Working Papers 1025, BBVA Bank, Economic Research Department.
    13. Alberto Bucci, 2008. "Competition and R&D investment in human capital-driven growth," Politica economica, Società editrice il Mulino, issue 2, pages 235-265.
    14. Alberto Bucci, 2005. "Product Market Competition, R&D Effort and Economic Growth," UNIMI - Research Papers in Economics, Business, and Statistics unimi-1011, Universitá degli Studi di Milano.
    15. David Mills, 2013. "Countervailing Power and Chain Stores," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 42(3), pages 281-295, 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. 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.
    18. Xinxin Li & Yuxin Chen, 2012. "Corporate IT Standardization: Product Compatibility, Exclusive Purchase Commitment, and Competition Effects," Information Systems Research, INFORMS, vol. 23(4), pages 1158-1174, December.
    19. Sara Fisher Ellison & Christopher M. Snyder, 2010. "Countervailing Power In Wholesale Pharmaceuticals," Journal of Industrial Economics, Wiley Blackwell, vol. 58(1), pages 32-53, March.
    20. Jeon, Doh-Shin & Menicucci, Domenico, 2019. "On the unprofitability of buyer groups when sellers compete," Games and Economic Behavior, Elsevier, vol. 115(C), pages 265-288.

    More about this item

    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:bic:opaper:3. 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: Anna Zasova (email available below). General contact details of provider: http://www.biceps.org .

    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.