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Identification of Supply Models of Retailer and Manufacturer Oligopoly Pricing AgEcon
Villas-Boas, Sofia Berto; Hellerstein, Rebecca.
This note outlines conditions under which we can identify a vertical supply model of multiple retailers' and manufacturers' oligopoly-pricing behavior. This is an important question particularly when the researcher believes, contrary to the traditional assumption followed in the empirical literature, that retailers may not be neutral pass-through intermediaries. We show that a data-set of an industry's product prices, quantities, and input prices over time is sufficient to identify the vertical model of retailers' and manufacturers' oligopoly-pricing behavior given nonlinear demand, for homogeneous-products industries, and given multi-product firms, for differentiated-products industries.
Tipo: Working or Discussion Paper Palavras-chave: Identification; Vertical relationships; Oligopoly models of multiple manufacturers and retailers.; Demand and Price Analysis; Industrial Organization; L13; L22.
Ano: 2004 URL: http://purl.umn.edu/25052
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ON THE EFFECTIVENESS OF PRIVATE FOOD STANDARDS AgEcon
Giraud-Heraud, Eric; Grazia, Cristina; Hammoudi, Abdelhakim.
This paper provides an original theoretical framework to better understand the raise of private quality standards in agrifood chains. Reasons for the development and conditions for the effectiveness of private quality standards are identified, by investigating firms’ strategic behaviour and, more precisely, both interactions among processing/retailing firms and upstream producers and the role of consumers’ behaviour. Considering different levels of consumers risk perception, we show that the incentive for firms to develop a more stringent private standard may increase with the level of the regulated minimum quality standard. Moreover, setting a private standard may reduce the risk of consumer dissatisfaction while increasing the marketed quantity....
Tipo: Conference Paper or Presentation Palavras-chave: Private quality standards; Vertical relationships; Risk perception; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Health Economics and Policy; L1; L15; Q13; Q18.
Ano: 2010 URL: http://purl.umn.edu/116408
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The Retail Service, The Market Power, and the Vertical Relationships in Breakfast Cereals Industry AgEcon
Chidmi, Benaissa; Lopez, Rigoberto A.; Cotterill, Ronald W..
This article extends the Berry, Levinsohn, Pakes (1995) model to include retail services by Boston supermarkets in an equilibrium model of breakfast cereals and then tests alternative vertical pricing games between manufacturers and supermarkets to ascertain who’s got the pricing power. Empirical results show that retail services play a significant role in market equilibrium. Consumers are willing to pay for additional retail services embedded in their cereal purchases, especially those with higher income and no kids. Markups and market shares increase with the level of retail services, although manufacturers dominate pricing decisions in the market channel for breakfast cereals. Significant downward biases in price elasticities and markup estimates result...
Tipo: Conference Paper or Presentation Palavras-chave: Vertical relationships; Discrete choice; Supermarkets; Market channel; Industrial Organization; Marketing; L11; L13; L66.
Ano: 2009 URL: http://purl.umn.edu/51770
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Voluntary Traceability and Transaction Costs: An Empirical Analysis in the Italian Meat Processing Supply Chain AgEcon
Banterle, Alessandro; Stranieri, Stefanella; Baldi, Lucia.
This paper analyses voluntary traceability effects on the coordination of the food supply chain from the transaction cost perspective. The analysis concerns Italian firms and makes particular reference to the meat sector. A survey was conducted by questionnaire to assess the changes in key transaction factors and costs after the introduction of traceability. The results underline an increase in the degree of human, material and site asset specificity, and reveal a reduction in the degree of uncertainty in transactions. Growth in some transaction costs related to monitoring is also observed. Factorial and cluster analysis were used to underline the different organisational solutions of the firms.
Tipo: Conference Paper or Presentation Palavras-chave: Traceability; Trust; Transaction cost; Vertical relationships; Meat chain; Agribusiness; Livestock Production/Industries.
Ano: 2006 URL: http://purl.umn.edu/7722
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Using Retail Scanner Data for Upstream Merger Analysis: Counterfactual Experiments in the Retail Coffee Market AgEcon
Villas-Boas, Sofia Berto.
The typical situation faced by antitrust authorities is to analyze and rule on a proposed merger by two or more manufacturers using scanner data at retail-level in a particular industry. This paper presents a simple framework to assess merger welfare effects in markets where both upstream and downstream firms make pricing decisions. I start with a benchmark model of manufacturers’ and retailers’ sequential pricing behavior. Then using counterfactual experiments, I explore the relationship between downstream retailer pricing models and the resulting estimates of upstream mergers. This exercise is done in the absence of wholesale prices looking at scanner data for the ground coffee category sold at several retail chains in Germany. I find that not...
Tipo: Working or Discussion Paper Palavras-chave: Merger Analysis; Vertical relationships; Multiple manufacturers and retailers; Demand and Price Analysis; C13; L13; L41.
Ano: 2007 URL: http://purl.umn.edu/7163
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