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

Marie-Laure Allain, Claire Chambolle and Stéphane Turolla

No 22-06, Working Papers SMART from INRAE UMR SMART

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: input price discrimination; policy evaluation; food retail sector (search for similar items in EconPapers)
JEL-codes: K21 L13 L42 L66 L81 (search for similar items in EconPapers)
Pages: 66 pages
Date: 2022
New Economics Papers: this item is included in nep-ind
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http://ageconsearch.umn.edu/record/327329 (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:rae:wpaper:202206

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