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The Effects of Retail Regulations on Prices: Evidence from the Loi Galland
[Effets des régulations sur les prix du commerce de détail : exemple de la Loi Galland]

Author

Listed:
  • Pierre Biscourp

    (ENSAE - Ecole Nationale de la Statistique et de l'Analyse Economique - Ecole Nationale de la Statistique et de l'Analyse Economique)

  • Xavier Boutin

    (INSEE - Institut national de la statistique et des études économiques (INSEE))

  • Thibaud Vergé

    (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique)

Abstract

In 1997, a new legislation banning below-invoice retail prices came into force in France. Individually negotiated discounts could no longer be passed on to consumers, which is equivalent to allowing industry-wide price floors. The anti-competitive effects of such practices are well-known. The elimination of intra-brand competition is expected to lead to a sharp increase in the retail prices. Using CPI raw data, we find evidence supporting this claim. The modification or revocation of the existing legislation (as it has been done in Ireland in December 2005) would then be expected to reduce retail prices.

Suggested Citation

  • Pierre Biscourp & Xavier Boutin & Thibaud Vergé, 2008. "The Effects of Retail Regulations on Prices: Evidence from the Loi Galland [Effets des régulations sur les prix du commerce de détail : exemple de la Loi Galland]," Working Papers hal-05683804, HAL.
    • Handle: RePEc:hal:wpaper:hal-05683804
    Note: View the original document on HAL open archive server: https://insee.hal.science/hal-05683804v1
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