Chain-Store Pricing and the Structure of Retail Markets

Matthew Olczak ()

Journal of Industry, Competition and Trade, 2015, vol. 15, issue 2, 87-104

Abstract: This paper examines competition between chain-stores and independent retailers in the UK retail opticians’ market. We demonstrate that the pricing policy adopted by chain-stores can determine the impact their entry has on independent retailers. Crucially, in this market the chain-store retailers set an identical national price across all local markets. Our results suggest that this pricing strategy lessens the detrimental effect competition from chain-stores has on independent retailers. Copyright Springer Science+Business Media New York 2015

Keywords: Retail competition; Chain-stores; National pricing; L11; L13 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:kap:jincot:v:15:y:2015:i:2:p:87-104

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DOI: 10.1007/s10842-014-0175-3

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