The effects of Retail Regulations on Prices: Evidence from the Loi Galland

Pierre Biscourp, Xavier Boutin and Thibaud Vergé
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Pierre Biscourp: INSEE

No 2013-49, Working Papers from Center for Research in Economics and Statistics

Abstract: Using a unique dataset merging micro data at product and store level with data on competition within local grocery markets, this paper provides an empirical analysis of a legislation that had the same effect as allowing industry-wide price floors. It shows that, after the introduction of the legislation, the link between retail prices and market concentration has significantly been weakened, especially for branded products. Price dispersion has dropped for branded products more than for store brands and price convergence appears to have taken place across stores. These results are consistent with recent theories on the anticompetitive effects of resale price maintenance in markets with interlocking relationships.

Keywords: retail prices; pricing regulations; resale price maintenance (search for similar items in EconPapers)
JEL-codes: K23 L42 L81 (search for similar items in EconPapers)
Pages: 32
Date: 2013-09
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Citations: View citations in EconPapers (30)

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Journal Article: The Effects of Retail Regulations on Prices: Evidence from the Loi Galland (2013)
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