Economic impact of category captaincy: an examination of assortments and prices

Madhu Viswanathan, Om Narasimhan and George John

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We empirically investigate the impact of category captaincy, an arrangement where the retailer works exclusively with a manufacturer to manage both the manufacturer’s and his rivals’ products. Using a unique data set that contains information on category captaincy as well as SKU-store-level sales and price across 24 retail chains and eight local markets in the United States for a frozen food category, we quantify the impact of captaincy on prices, assortments, profits, and consumer welfare. Interestingly, our estimates suggest that captaincy can lead to welfare gains for consumers, which argues against a purely negative view of captaincy by policy makers.

Keywords: moment inequalities; category management; structural models; retail; category captaincy (search for similar items in EconPapers)
JEL-codes: J01 L81 R14 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2020-10-19
New Economics Papers: this item is included in nep-com
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Citations: View citations in EconPapers (2)

Published in Marketing Science, 19, October, 2020, 40(2), pp. 0 - 0. ISSN: 0732-2399

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