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Supermarket Promotions and Food Prices

Author

Listed:
  • Hao Lan

    (Centre for Competition Policy and Norwich Business School, University of East Anglia)

  • Tim A. Lloyd

    (University of Nottingham)

  • Wyn Morgan

    (University of Nottingham)

Abstract

Using a large and comprehensive data set containing the average weekly prices of barcode specific products sold in seven national food retailers in the UK, we present statistical evidence on two pricing practices that have attracted public interest. Analysing price dynamics before and after periods of promotional discounting the investigation finds first, no evidence of a general tendency for sales to disguise rises in the regular price, and second, some evidence for prices to rise prior to sales in a manner that is consistent with the exaggeration of the discount.

Suggested Citation

  • Hao Lan & Tim A. Lloyd & Wyn Morgan, 2014. "Supermarket Promotions and Food Prices," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2014-02, Centre for Competition Policy, University of East Anglia, Norwich, UK..
  • Handle: RePEc:uea:ueaccp:2014_02
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    More about this item

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)

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