Private Label Products as Experience Goods

Bergès-Sennou Fabian and Michael Waterson
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Bergès-Sennou Fabian: INRA, University of Toulouse, France

Journal of Agricultural & Food Industrial Organization, 2005, vol. 3, issue 2, 19

Abstract: In Europe, food retailing has become more concentrated and private label goods have spread over the last 40 years. They are now a key element of retailers' shelf offer. Using a model in which consumers become informed about the good's quality only in period two, we examine what determines the presence or absence of private label experience goods in supermarkets, taking into account the retailer's reputation commitment involved. Our most novel result is that for products purchased infrequently, introducing a reputable private label is unsustainable. However, more retailer bargaining power increases the likelihood of a private label good being marketed.

Keywords: private label; experience good; new good (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (4)

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Working Paper: Private Label Products as Experience Goods (2005)
Working Paper: Private Label Products As Experience Goods (2004)
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DOI: 10.2202/1542-0485.1121

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