The persistence of industry, firm-specific, and corporate-parent effects on firm profitability in the food economy are calculated and further analyzed within its four major sectors: food processing, wholesale grocery, retail supermarket, and restaurant. Profits are more persistent within an industry than within a corporation. The retail supermarket sector has had stable profits as has individual retail supermarket firms relative to the other three sectors.
Bibliographical noteFunding Information:
We thank B. Wade Brorsen and an anonymous reviewer for helpful comments and suggestions. Funding for this research was provided by the Agricultural Marketing Resource Center. Manuscript number 04-316-j of the Kansas Agricultural Experiment Station.
Copyright 2008 Elsevier B.V., All rights reserved.
- Industrial organization
- Market structure