Modelling Price Dispersion as an Outcome of Competition in the Irish Grocery Market

Patrick Walsh () and Ciara Whelan

Journal of Industrial Economics, 1999, vol. 47, issue 3, 325-343

Abstract: The paper empirically models price dispersion between related brands within product categories of the Irish Independent Grocery market. Retail brand prices are averaged over the independent shops stocking the brand. Since individual brands are retailed through different groups of shops, brands are priced over heterogeneous consumer segments. Brand price dispersion is estimated to increase with competition when conditioned on brand distribution structures, while controlling for other observed and unobserved deterministic factors. The data suggest that brand pricing across consumer groups induce varying degrees of localised price competition rather than pricing across segments to extract consumer willingness to pay.

Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:bla:jindec:v:47:y:1999:i:3:p:325-343

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Journal of Industrial Economics is currently edited by Pierre Regibeau, Yeon-Koo Che, Kenneth Corts, Thomas Hubbard, Patrick Legros and Frank Verboven

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