The Effect of Input Price Discrimination on Retail Prices: Theory and Evidence from France

Marie-Laure Allain, Claire Chambolle and Stéphane Turolla

No 327329, Working Papers from Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2)

Abstract: We develop a model of vertical relations between national brand and private label producers and competing multi product retailers to derive new predictions on the impact of input price discrimination on retail prices. A reform that lifted a ban on input price discrimination in France provides a natural experiment to test these predictions. Using household scanner data on food prices, we run a difference-in-differences analysis and show that the reform caused a significant decrease of the relative prices of national brand products. These results suggest a pro-competitive effect of authorizing input price discrimination.

Keywords: Demand and Price Analysis; Industrial Organization (search for similar items in EconPapers)
Pages: 66 p
Date: 2022-10-24
New Economics Papers: this item is included in nep-agr, nep-com and nep-reg
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https://ageconsearch.umn.edu/record/327329/files/WP%2022-06.pdf (application/pdf)

Related works:
Working Paper: The Effect of Input Price Discrimination on Retail Prices: Theory and Evidence from France (2022)
Working Paper: The Effect of Input Price Discrimination on Retail Prices: Theory and Evidence from France (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:inrasl:327329

DOI: 10.22004/ag.econ.327329

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