Food Retailers' Pricing and Marketing Strategies, with Implications for Producers

Lan Li, Richard J. Sexton and Tian Xia
Additional contact information
Lan Li: La Trobe University
Richard J. Sexton: University of California, Davis
Tian Xia: Kansas State University

Agricultural and Resource Economics Review, 2006, vol. 35, issue 2, pages 221-238

Abstract: This paper examines grocery retailers’ ability to influence prices charged to consumers and paid to suppliers. We discuss how retailer market power manifests itself in terms of pricing and marketing strategies by setting forth and offering evidence in support of eight “stylized facts” of retailer pricing and brand decisions. We argue that little, if any, of this behavior can be explained by a model of a competitive, price-taking retailer, but that most of the indicated behavior was also inconsistent with traditional models of market power. Finally, we discuss the impacts of aspects of this retailer behavior on the upstream farm sector.

Keywords: grocery retailer; market power; price spread; sales (search for similar items in EconPapers)

Downloads: (external link)
http://agecon.lib.um ... rid=26835&ftype=.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Access Statistics for this article

More articles in Agricultural and Resource Economics Review from Northeastern Agricultural and Resource Economics Association
Contact information at EDIRC.
Series data maintained by David R. Just ().