Food Prices and Market Structure in Sweden

Marcus Asplund and Richard Friberg

Scandinavian Journal of Economics, 2002, vol. 104, issue 4, 547-566

Abstract: This paper examines retail grocery price levels across a large panel of stores in Sweden. We explain price variation across stores by market structure variables to capture differences in competition intensity and a number of store– and region–specific factors. Most of the explained variation in prices can be attributed to store–specific factors such as size and chain affiliation. Overall, the relation between market structure variables and food prices is weak, and effects are small in percentage terms. Nevertheless, higher local concentration of stores, higher regional wholesaler concentration and a lower market share of large stores are all correlated with higher prices. JEL classification: D43; L13; L81

Date: 2002
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