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Inter-Format Competition among Retailers - The Role of Private Label Products in Market Delineation

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  • Rickert, Dennis
  • Wey, Christian
  • Haucap, Justus
  • Heimeshoff, Ulrich
  • Klein, Gordon J.

Abstract

Given various recent antitrust investigations on the retail sector, we deal with uncovering demand systems substitution patterns for a particular market (diapers) to investigate the inter-format competition (supermarkets vs. discounters vs. drugstores). Using the uncovered demand system we compute retail and manufacturer margins and combine those with standard market delineation techniques, showing that the strongest substitution patterns are between the leading brand as well as private labels sold at drugstores and discounters. This result is important given controversies among competition authorities, firms and academic researchers.

Suggested Citation

  • Rickert, Dennis & Wey, Christian & Haucap, Justus & Heimeshoff, Ulrich & Klein, Gordon J., 2013. "Inter-Format Competition among Retailers - The Role of Private Label Products in Market Delineation," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79797, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc13:79797
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    References listed on IDEAS

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    13. Haucap, Justus & Heimeshoff, Ulrich & Klein, Gordon J. & Rickert, Dennis & Wey, Christian, 2013. "Bargaining power in manufacturer-retailer relationships," DICE Discussion Papers 107, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
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    Cited by:

    1. Marie-Laure Allain & Claire Chambolle & Stéphane Turolla & Sofia Villas-Boas, 2013. "The Impact of Retail Mergers on Food Prices: Evidence from France," Working Papers hal-00920460, HAL.
    2. Haucap, Justus & Heimeshoff, Ulrich & Klein, Gordon J. & Rickert, Dennis & Wey, Christian, 2013. "Wettbewerbsprobleme im Lebensmitteleinzelhandel," DICE Ordnungspolitische Perspektiven 48, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    3. Haucap, Justus & Heimeshoff, Ulrich & Klein, Gordon J. & Rickert, Dennis & Wey, Christian, 2013. "Bargaining power in manufacturer-retailer relationships," DICE Discussion Papers 107, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).

    More about this item

    JEL classification:

    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General

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