Local Market Structure and Consumer Prices: Evidence from a Retail Merger

Dennis Rickert, Jan Philip Schain and Joel Stiebale

Journal of Industrial Economics, 2021, vol. 69, issue 3, 692-729

Abstract: This paper analyzes the effects of a merger between a German supermarket chain and a soft discounter on consumer prices. We exploit geographic price variation within retail chains and brands and use a difference‐in‐differences estimator to compare regional markets with changes in market structure to unaffected markets. Our results indicate that both insiders and outsiders raised average prices after the merger, particularly in regions with high expected changes in retail concentration. In contrast, we estimate price declines in regions that did not experience a rise in concentration but were potentially affected by cost savings within the merged entity.

Date: 2021
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Citations: View citations in EconPapers (4)

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https://doi.org/10.1111/joie.12275

Related works:
Working Paper: Local Market Structure and Consumer Prices: Evidence from a Retail Merger* (2021)
Working Paper: Local market structure and consumer prices: Evidence from a retail merger (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:jindec:v:69:y:2021:i:3:p:692-729

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