Private Labels: Supermarket Chain Buyer Power in Action
The issue of supermarket chain power in wholesale markets has been around at least since the 1930’s when A&P surfaced as a nationwide chain with centralized buying (Adelman, 1959). Curiously those that complained the loudest were not firms that sold to supermarkets. Small retailers, who were unable to wrest concessions from brand manufacturers or wholesalers of fresh fruits and vegetables, alleged that large chain buyer power was driving them out of business. Consequently the Robinson Patman Act (1936) was passed to monitor the exercise of buyer power and its impact on smaller retailers as well as sellers. Enforcement has always been a thorny exercise because cost justified large buyer discounts are not illegal.
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| Length: | 29 pages |
| Date of creation: | Nov 2006 |
| Handle: | RePEc:zwi:fpcrep:096 |
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References listed on IDEAS
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- Davidson, Russell & MacKinnon, James G, 1981.
"Several Tests for Model Specification in the Presence of Alternative Hypotheses,"
Econometrica,
Econometric Society, vol. 49(3), pages 781-793, May.
- Russell Davidson & James G. MacKinnon, 1980. "Several Tests for Model Specification in the Presence of Alternative Hypotheses," Working Papers 378, Queen's University, Department of Economics.
- Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
- Jagmohan S. Raju & Raj Sethuraman & Sanjay K. Dhar, 1995. "The Introduction and Performance of Store Brands," Management Science, INFORMS, vol. 41(6), pages 957-978, June.
- Li Tian & Ronald W. Cotterill, 2005. "Constrained price, address, or logit brand demand models: An econometric comparison in the Boston fluid milk market," Agribusiness, John Wiley & Sons, Ltd., vol. 21(2), pages 149-166.
- Mills, David E, 1995. "Why Retailers Sell Private Labels," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 4(3), pages 509-528, Fall. Full references (including those not matched with items on IDEAS)
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