Impacts from a retail grocery acquisition: Do national and store brand prices respond differently?

William Secor and Metin Cakir

No 235945, 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association

Abstract: We investigate the extent to which a grocery retailer merger has different effects on the prices of national and store brands. Using retail scanner data, we retrospectively analyze a food retail acquisition in a large United States city. We focus on fluid milk and ready-to-eat cereal categories, which represent a relatively homogenous and a relatively differentiated product category, respectively. We use a difference-in-difference estimation framework to obtain the causal effect of the acquisition on prices for the acquiring retailer. Our findings provide evidence that store brands in differentiated product categories could allow a retailer to improve its market power.

Keywords: Agribusiness; Consumer/Household Economics (search for similar items in EconPapers)
Pages: 34
Date: 2016
New Economics Papers: this item is included in nep-agr, nep-com and nep-mkt
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea16:235945

DOI: 10.22004/ag.econ.235945

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