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Private Labels, Price Rivalry, and Public Policy

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  • Gabrielsen, Tommy Staahl
  • Sørgard, Lars

Abstract

The article examines how the existence of a retailer owned brand, private label, aspects the price setting of a national brand. We …nd that the potential for a private label introduction may lead to price concessions from the national brand producer, but that actual private label introduction as such may very well lead to higher retail prices on national brands. We argue that this may have important implications for the interpretation of empirical results and the public policy towards national brands.

Suggested Citation

  • Gabrielsen, Tommy Staahl & Sørgard, Lars, 2000. "Private Labels, Price Rivalry, and Public Policy," University of California at Santa Barbara, Economics Working Paper Series qt8wh900ks, Department of Economics, UC Santa Barbara.
  • Handle: RePEc:cdl:ucsbec:qt8wh900ks
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    Cited by:

    1. MANEZ, Juan A. & MONER-COLONQUES, Rafael & SEMPERE-MONERRIS, José J. & URBANO, Amparo, 2011. "Price differentials among brands in retail distribution: product quality and service quality," CORE Discussion Papers 2011017, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Rey, Patrick & Verge, T., 2016. "Secret contracting in multilateral relations," TSE Working Papers 16-744, Toulouse School of Economics (TSE), revised Jul 2017.
    3. Colangelo Giuseppe, 2008. "Private Labeling and Competition between Retailers," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 6(1), pages 1-36, July.
    4. Christophe Bontemps & Valérie Orozco & Vincent Réquillart, 2008. "Private Labels, National Brands and Food Prices," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 33(1), pages 1-22, August.
    5. Castellari, Elena & Moro, Daniele Daniele & Platoni, Silvia & Sckokai, Paolo, 2014. "Investigating the impact of Private Labels on National Brand prices in the Italian yogurt market," 2014 Third Congress, June 25-27, 2014, Alghero, Italy 173020, Italian Association of Agricultural and Applied Economics (AIEAA).
    6. Patrick Rey & Thibaud Vergé, 2017. "Secret contracting in multilateral relations," Working Papers 2017-44, Center for Research in Economics and Statistics.
    7. Blanchard, Emily & Chesnokova, Tatyana & Willmann, Gerald, 2013. "Private labels and international trade: Trading variety for volume," Kiel Working Papers 1829, Kiel Institute for the World Economy (IfW).
    8. Dubois, Pierre & Jullien, Bruno, 2016. "Product design and decision rights in vertical structures," Research in Economics, Elsevier, vol. 70(4), pages 558-568.
    9. Hasnas, Irina & Wey, Christian, 2015. "Full versus partial collusion among brands and private label producers," DICE Discussion Papers 190, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    10. Fabian Bergès & Philippe Bontems & Vincent Réquillart, 2009. "L'impact économique du développement des marques de distributeurs," Economie & Prévision, La Documentation Française, vol. 0(3), pages 41-56.
    11. José J. Sempere Monerris & Rafael Moner Colonques & Amparo Urbano, 2007. "Store Vs. National Brands: A Product Line Mix Puzzle," Working Papers. Serie AD 2007-10, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    12. Daunfeldt, Sven-Olov & Orth, Matilda & Rudholm, Niklas, 2008. "Does the Quality of Store Brands Affect the Number of National Brand Suppliers?," HUI Working Papers 18, HUI Research.
    13. repec:spr:weltar:v:153:y:2017:i:3:d:10.1007_s10290-017-0284-2 is not listed on IDEAS
    14. Bontemps, C. & Orozco, V. & Réquillart, V., 2005. "Confirming the price effects of private labels development," Economics Working Paper Archive (Toulouse) 200506, French Institute for Agronomy Research (INRA), Economics Laboratory in Toulouse (ESR Toulouse).
    15. Sckokai, Paolo & Soregaroli, Claudio, 2006. "Do consumers benefit from private label development?," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10068, European Association of Agricultural Economists.
    16. Fabian Bergès & Zohra Bouamra-Mechemache, 2012. "Is producing a private label counterproductive for a branded manufacturer?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 39(2), pages 213-239, April.
    17. Paolo Sckokai & Claudio Soregaroli, 2008. "Impact of private label development across retail formats: Evidences from the Italian dairy market," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 87(2), pages 27-47.
    18. Daniel Hassan & Sylvette Monier-Dilhan, 2006. "National brands and store brands: Competition through public quality labels," Agribusiness, John Wiley & Sons, Ltd., vol. 22(1), pages 21-30.
    19. Johansen, Bjørn Olav, 2012. "Private Labels, Rent Shifting And Consumer Welfare," Working Papers in Economics 02/12, University of Bergen, Department of Economics.
    20. Bonnet, Céline & Corre, Tifenn & Réquillart, Vincent, 2015. "Price Transmission in Food Chains: The Case of the Dairy Industry," TSE Working Papers 15-563, Toulouse School of Economics (TSE).
    21. Jorge Tarziján M, 2003. "Private Labels And Retail Market Concentration," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 6(1), pages 1-20.
    22. Bergès, Fabian & Bontems, Philippe & Réquillart, Vincent, 2003. "A survey on the Economic Impact of the Development of Private Labels," IDEI Working Papers 236, Institut d'Économie Industrielle (IDEI), Toulouse.
    23. Bonanno Alessandro & Lopez Rigoberto A., 2005. "Private Label Expansion and Supermarket Milk Prices," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 3(1), pages 1-18, February.

    More about this item

    Keywords

    Private Labels; Price Rivalry; Public Policy;

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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