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Price-Cost Margins in the Italian Grocery Trade : An Empirical Analysis


  • Guilietti, M.


In this work the determinants of retailers' price-cost margings are investigated using a theoretical model of bilateral bargaining. We use bimonthly data on 36 grocery productes in Italy over the period 1989-1992 to test the theoretical predictions on the effect of vertical relationships on the retailers's price-cost margin.

Suggested Citation

  • Guilietti, M., 1996. "Price-Cost Margins in the Italian Grocery Trade : An Empirical Analysis," Discussion Papers 9613, Exeter University, Department of Economics.
  • Handle: RePEc:exe:wpaper:9613

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    References listed on IDEAS

    1. Bulkley, George & Myles, Gareth D & Pearson, Bernard R, 2001. "On the Membership of Decision-Making Committees," Public Choice, Springer, vol. 106(1-2), pages 1-22, January.
    2. repec:exe:wpaper:00/09 is not listed on IDEAS
    3. Alison L. Booth, 1985. "The Free Rider Problem and a Social Custom Model of Trade Union Membership," The Quarterly Journal of Economics, Oxford University Press, vol. 100(1), pages 253-261.
    4. Myles, Gareth D. & Naylor, Robin A., 1995. "Do unions reduce discrimination? A model of Nash bargaining between a union and an employer with discriminatory tastes," Labour Economics, Elsevier, vol. 2(3), pages 249-274, September.
    5. Vannetelbosch, Vincent J., 1997. "Wage bargaining with incomplete information in an unionized Cournot oligopoly," European Journal of Political Economy, Elsevier, vol. 13(2), pages 353-374, May.
    6. Bulkley, George & Myles, Gareth D., 1997. "Bargaining over effort," European Journal of Political Economy, Elsevier, vol. 13(2), pages 375-384, May.
    7. Robin Naylor, 1989. "Strikes, Free Riders, and Social Customs," The Quarterly Journal of Economics, Oxford University Press, vol. 104(4), pages 771-785.
    8. Naylor, Robin & Cripps, Martin, 1993. "An economic theory of the open shop trade union," European Economic Review, Elsevier, vol. 37(8), pages 1599-1620, December.
    9. Moreton, David R., 1998. "An open shop trade union model of wages, effort and membership," European Journal of Political Economy, Elsevier, vol. 14(3), pages 511-527, August.
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    More about this item



    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce


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