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Brand Name and Private Label Price Setting by a Monopoly Store


  • Jeffrey M. Perloff
  • Jeffrey LaFrance
  • Hayley H. Chouinard


A monopoly that sells to brand-name loyal customers and to price-sensitive customers must decide whether to carry both name-brand and a private-label products and how much to charge. The monopoly may charge either more or less for the brand name if it carries a private label, and the price differential between the products is sensitive to cost and taste parameters.

Suggested Citation

  • Jeffrey M. Perloff & Jeffrey LaFrance & Hayley H. Chouinard, 2012. "Brand Name and Private Label Price Setting by a Monopoly Store," Monash Economics Working Papers 18-12, Monash University, Department of Economics.
  • Handle: RePEc:mos:moswps:2012-18

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    References listed on IDEAS

    1. Michael B. Ward & Jay P. Shimshack & Jeffrey M. Perloff & J. Michael Harris, 2002. "Effects of the Private-Label Invasion in Food Industries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 961-973.
    2. Robert B. Barsky & Mark Bergen & Shantanu Dutta & Daniel Levy, 2003. "What Can the Price Gap between Branded and Private-Label Products Tell Us about Markups?," NBER Chapters,in: Scanner Data and Price Indexes, pages 165-228 National Bureau of Economic Research, Inc.
    3. Steven Salop, 1977. "The Noisy Monopolist: Imperfect Information, Price Dispersion and Price Discrimination," Review of Economic Studies, Oxford University Press, vol. 44(3), pages 393-406.
    4. Pradeep K. Chintagunta & André Bonfrer & Inseong Song, 2002. "Investigating the Effects of Store-Brand Introduction on Retailer Demand and Pricing Behavior," Management Science, INFORMS, vol. 48(10), pages 1242-1267, October.
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    More about this item


    brand name; private label; monopoly; pricing;

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • D3 - Microeconomics - - Distribution
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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