The effects of retail concentration on retail dairy product prices in the United States

V. Hovhannisyan, M. Bozic

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

This study provides an empirical investigation of the relationship between grocery retail concentration and retail dairy product prices in the United States. The analysis was performed based on a unique data set on store-level retail prices provided by the Information Resources Inc. Further, alternative measures of retail concentration were considered, which included revenue and store selling space-based Herfindahl-Hirschman Index that were computed based on a Nielsen TDLinx data set on store characteristics. Results from a reduced-form empirical framework estimated via panel data techniques indicated that grocery retail concentration had a positive statistically significant effect on retail dairy product prices in the analyzed locations during the analyzed period of time. Specifically, a 10% increase in concentration was found to lead to a 0.46% rise in retail dairy product prices. This central result was robust to the way in which retail concentration was measured and was consistent with broader empirical evidence in the literature on retail market power.

Original languageEnglish (US)
Article number74518
Pages (from-to)4928-4938
Number of pages11
JournalJournal of Dairy Science
Volume99
Issue number6
DOIs
StatePublished - Jun 1 2016

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Dairy Products
dairy products
groceries
market power
retail marketing
information sources
income
Datasets
methodology

Keywords

  • Dairy food products
  • Market power
  • Retail concentration
  • Retail price

Cite this

The effects of retail concentration on retail dairy product prices in the United States. / Hovhannisyan, V.; Bozic, M.

In: Journal of Dairy Science, Vol. 99, No. 6, 74518, 01.06.2016, p. 4928-4938.

Research output: Contribution to journalArticle

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