Inter-Format Competition Among Retailers - The Role of Private Label Products in Market Delineation.

Given various recent antitrust investigations on the retail sector, we deal with uncovering demand systems substitution patterns for a particular market (diapers) to investigate the inter-format competition (supermarkets vs. discounters vs. drugstores). Using the uncovered demand system we compute retail and manufacturer margins and combine those with standard market delineation techniques, showing that the strongest substitution patterns are between the leading brand as well as private labels sold at drugstores and discounters. This result is important given controversies among competition authorities, firms and academic researchers.

[1]  A. Barth,et al.  How large is the magnitude of fixed-mobile call substitution? Empirical evidence from 16 Europen countries , 2012 .

[2]  Mehmet Karaçuka,et al.  Consumer choice and local network effects in mobile telecommunications in Turkey , 2013 .

[3]  Irene Bertschek,et al.  More Bits – More Bucks? Measuring the Impact of Broadband Internet on Firm Performance , 2013 .

[4]  Daniel Klapper,et al.  A Larger Slice or a Larger Pie? An Empirical Investigation of Bargaining Power in the Distribution Channel , 2008, Mark. Sci..

[5]  Justus Haucap,et al.  In vino veritas: Theory and evidence on social drinking , 2011 .

[6]  Veit Böckers,et al.  The green game changer: An empirical assessment of the effects of wind and solar power on the merit order , 2013 .

[7]  Tobias Wenzel,et al.  Price-Dependent Demand in Spatial Models , 2012 .

[8]  Christian Wey,et al.  Input Price Discrimination (Bans), Entry and Welfare , 2013 .

[9]  Tobias Wenzel,et al.  Deregulation of Shopping Hours: The Impact on Independent Retailers and Chain Stores , 2011 .

[10]  Gerhard Riener,et al.  Heterogeneous treatment effects in groups , 2013 .

[11]  Miguel A. Fonseca,et al.  Explicit vs. Tacit Collusion – The Impact of Communication in Oligopoly Experiments , 2012 .

[12]  Fatima Lambarraa,et al.  On the Norms of Charitable Giving in Islam: A Field Experiment , 2012 .

[13]  Hans-Theo Normann,et al.  Effects of different cartel policies: evidence from the German power-cable industry , 2014 .

[14]  Daniel Coublucq,et al.  Demand Estimation with Selection Bias: A Dynamic Game Approach with an Application to the US Railroad Industry , 2013 .

[15]  J. Steenkamp,et al.  The Effect of Business-Cycle Fluctuations on Private-Label Share: What has Marketing Conduct Got to do with it? , 2012 .

[16]  Ronald Peeters,et al.  The Impact of Timing on Bidding Behavior in Procurement Auctions of Contracts with Private Costs , 2010 .

[17]  Antitrust economic analysis in food marketing channels: a global perspective , 2010 .

[18]  N. Jentzsch,et al.  Targeted pricing and customer data sharing among rivals , 2013 .

[19]  Tobias Wenzel,et al.  Consumer myopia, competition and the incentives to unshroud add-on information , 2014 .

[20]  Justus Haucap,et al.  Consumer Behavior towards On-net/Off-net Price Differentiation , 2011 .

[21]  Dragan Jovanovic,et al.  An equilibrium analysis of efficiency gains from mergers , 2012 .

[22]  Jagmohan S. Raju,et al.  The introduction and performance of store brands , 1995 .

[23]  G. Griffith.  The Impact of Supermarkets on Farm Suppliers , 2004 .

[24]  Dragan Jovanovic,et al.  Passive partial ownership, sneaky takeovers, and merger control , 2014 .

[25]  Stephen J. Hoch,et al.  Why Store Brand Penetration Varies by Retailer , 1997 .

[26]  S. Salop,et al.  Updating the Merger Guidelines: Comments , 2009 .

[27]  Dennis Rickert,et al.  Bargaining power in manufacturer-retailer relationships , 2013 .

[28]  Geza Sapi,et al.  Bargaining, vertical mergers and entry , 2012 .

[29]  Justus Haucap,et al.  What drives the relevance and reputation of economics journals? An update from a survey among economists , 2015, Scientometrics.

[30]  Julia Graf,et al.  The effects of rebate contracts on the health care system , 2014, The European Journal of Health Economics.

[31]  Kristian Giesen,et al.  City Age and City Size , 2014 .

[32]  Clémence Christin,et al.  Entry Deterrence Through Cooperative R&D Over-Investment , 2013 .

[33]  Eric T. Bradlow,et al.  Empirical Models of Manufacturer-Retailer Interaction: A Review and Agenda for Future Research By , 2011 .

[34]  Christian Wey,et al.  The Effects of Remedies on Merger Activity in Oligopoly , 2012 .

[35]  Mehmet Karaçuka,et al.  A comparative analysis of alternative univariate time series models in forecasting Turkish inflation , 2012 .

[36]  Tim Friehe,et al.  Private Protection Against Crime When Property Value is Private Information , 2012, SSRN Electronic Journal.

[37]  Tobias Wenzel,et al.  Regulating Advertising in the Presence of Public Service Broadcasting , 2012 .

[38]  Hans-Theo Normann,et al.  Do short-term laboratory experiments provide valid descriptions of long-term economic interactions? A study of Cournot markets , 2013 .

[39]  Tobias Wenzel,et al.  Piracy in a two-sided software market ☆ , 2013 .

[40]  Justus Haucap,et al.  The Effects of Gasoline Price Regulations: Experimental Evidence , 2013 .

[41]  Geza Sapi,et al.  Technology Licensing by Advertising Supported Media Platforms: An Application to Internet Search Engines , 2011 .

[42]  Thomas D. Jeitschko,et al.  Signaling in deterministic and stochastic settings , 2012 .

[43]  Koen Pauwels,et al.  Private-Label Use and Store Loyalty , 2008 .

[44]  Isabel Teichmann,et al.  The Strategic Use of Private Quality Standards in Food Supply Chains , 2011 .

[45]  Hans-Theo Normann,et al.  Excess Capacity and Pricing in Bertrand-Edgeworth Markets: Experimental Evidence , 2013 .

[46]  A. Hole.  Fitting Mixed Logit Models by Using Maximum Simulated Likelihood , 2007 .

[47]  C. Manasakis,et al.  Downstream Mode of Competition with Upstream Market Power , 2014 .

[48]  Tobias Wenzel,et al.  Transparency, price-dependent demand and product variety , 2011 .

[49]  Eric T. Bradlow,et al.  Empirical models of manufacturer-retailer interaction: A review and agenda for future research , 2010 .

[50]  K. Train,et al.  A Control Function Approach to Endogeneity in Consumer Choice Models , 2010 .

[51]  Hanna Hottenrott,et al.  Policy-Induced Environmental Technology and Inventive Efforts: Is There a Crowding Out? , 2013, Industry and Innovation.

[52]  Christian Wey,et al.  On the role of consumer expectations in markets with network effects , 2012 .

[53]  Antitrust Evaluation of Horizontal Mergers: An Economic Alternative to Market Definition , 2008 .

[54]  Jens Suedekum,et al.  Financial Liberalization and the Relationship-Specificity of Exports , 2014, SSRN Electronic Journal.

[55]  Mehmet Karacuka,et al.  A Spatial Approach To Measure Productivity Spillovers Of Foreign Affiliated Firms In Turkish Manufacturing Industries , 2012 .

[56]  Oliver Falck,et al.  Why are Educated and Risk-Loving Persons More Mobile Across Regions? , 2012, SSRN Electronic Journal.

[57]  Daniel Klapper,et al.  Empirical Evidence on the Role of Nonlinear Wholesale Pricing and Vertical Restraints on Cost Pass-Through , 2009, Review of Economics and Statistics.

[58]  Paolo Buccirossi,et al.  They Played the Merger Game: A Retrospective Analysis in the UK Videogames Market , 2013 .

[59]  Christian Kellner,et al.  The Effect of Ambiguity Aversion on Reward Scheme Choice , 2014 .

[60]  Steven T. Berry,et al.  Automobile Prices in Market Equilibrium , 1995 .

[61]  Paolo Buccirossi,et al.  Competition Policy and Productivity Growth: An Empirical Assessment , 2009 .

[62]  Hans-Theo Normann,et al.  A Within-Subject Analysis of Other-Regarding Preferences , 2010, Games Econ. Behav..

[63]  Vishal Singh,et al.  Research Note - Are Store-Brand Buyers Store Loyal? An Empirical Investigation , 2008, Manag. Sci..

[64]  Dragan Jovanovic,et al.  Competition in Germany s Minute Reserve Power Market : An Econometric Analysis , 2009 .

[65]  Tobias Wenzel,et al.  Independent Service Operators in ATM Markets , 2014 .

[66]  Kenneth E. Train,et al.  Discrete Choice Methods with Simulation , 2016 .

[67]  Steven T. Berry.  Estimating Discrete-Choice Models of Product Differentiation , 1994 .

[68]  Tomaso Duso,et al.  An Empirical Assessment of the 2004 EU Merger Policy Reform , 2013 .

[69]  Vanessa von Schlippenbach,et al.  One‐Stop Shopping as a Cause of Slotting Fees: A Rent‐Shifting Mechanism , 2013 .

[70]  Georg Clemens,et al.  Rebels without a clue? Experimental evidence on partial cartels , 2013 .

[71]  Torben Stühmeier,et al.  Roaming and investments in the mobile internet market , 2012 .

[72]  Dragan Jovanovic,et al.  Mergers, managerial incentives, and efficiencies , 2013 .

[73]  P. Dubois,et al.  Two-Part Tariffs Versus Linear Pricing between Manufacturers and Retailers: Empirical Tests on Differentiated Products Markets , 2006 .

[74]  Ulrich Heimeshoff,et al.  Pull-forward effects in the German car scrappage scheme: A time series approach , 2012 .

[75]  L. Filistrucchi,et al.  Upward Pricing Pressure in Two�?Sided Markets , 2012 .

[76]  Joseph A. Clougherty,et al.  Using rival effects to identify synergies and improve merger typologies , 2010 .

[77]  Thomas D. Jeitschko.  NYSE Changing Hands: Antitrust and Attempted Acquisitions of an Erstwhile Monopoly , 2013 .

[78]  Annika Herr,et al.  Quality and Welfare in a Mixed Duopoly with Regulated Prices: The Case of a Public and a Private Hospital , 2011 .

[79]  Tobias Regner,et al.  Voluntary payments, privacy and social pressure on the Internet: A natural field experiment , 2012 .

[80]  Luca Lambertini,et al.  Open Innovation in a dynamic cournot duopoly , 2014 .

[81]  Dragan Jovanovic,et al.  Investment behavior in a constrained dictator game , 2012 .

[82]  Klaus Gugler,et al.  How Effective is European Merger Control , 2011 .

[83]  S. Villas-Boas.  Using Retail Data for Upstream Merger Analysis , 2007 .

[84]  Aviv Nevo.  Measuring Market Power in the Ready-to-Eat Cereal Industry , 1998 .

[85]  V. Réquillart,et al.  Does the EU sugar policy reform increase added sugar consumption? An empirical evidence on the soft drink market. , 2011, Health economics.

[86]  Tim Friehe,et al.  Status Concerns as a Motive for Crime? , 2013, SSRN Electronic Journal.

[87]  Hans Christian Müller,et al.  Forecast Errors in Undisclosed Management Sales Forecasts: The Disappearance of the Overoptimism Bias , 2011 .

[88]  Rhonda L. Smith,et al.  The Australian Grocery Industry: A Competition Perspective , 2006 .

[89]  Abraham L. Wickelgren,et al.  A Critical Analysis of Critical Loss Analysis , 2003 .

[90]  Thomas D. Jeitschko,et al.  Adverse Effects of Patent Pooling on Product Development and Commercialization , 2012 .

[91]  Claudia Keser,et al.  Technology adoption in markets with network effects: Theory and experimental evidence , 2012, Inf. Econ. Policy.

[92]  Ralf Dewenter,et al.  More Ads, More Revs? Is there a Media Bias in the Likelihood to be Reviewed? , 2012 .

[93]  Ronald T. Wilcox,et al.  Private-Labels and the Channel Relationship: A Cross-Category Analysis , 1998 .

[94]  Hans-Theo Normann,et al.  The impact of the termination rule on cooperation in a prisoner’s dilemma experiment , 2011, International Journal of Game Theory.

[95]  Michael Berlemann,et al.  Which Factors Drive the Decision to Boycott and Opt Out of Research Rankings? A Note , 2012 .

[96]  Mehmet Karaçuka,et al.  The bank lending channel in Turkey: has it changed after the low-inflation regime? , 2012 .

[97]  K. Train.  Recreation Demand Models with Taste Differences Over People , 1998 .

[98]  Raj Sethuraman,et al.  A meta-analysis of national brand and store brand cross-promotional price elasticities , 1995 .

[99]  Matthias Heinz,et al.  Do Women Behave More Reciprocally than Men? Gender Differences in Real Effort Dictator Games , 2012 .

[100]  Annika Herr,et al.  Pharmaceutical prices under regulation: Tiered co-payments and reference pricing in Germany , 2012 .

[101]  R. Clarke,et al.  Buyer Power and Competition in European Food Retailing , 2002 .

[102]  Gordon J. Klein,et al.  How regulation affects network and service quality in related markets , 2012 .

[103]  Ralf Dewenter,et al.  Hospital Market Concentration and Discrimination of Patients , 2013 .

[104]  Ralf Dewenter,et al.  Calling Party Pays or Receiving Party Pays? The Diffusion of Mobile Telephony with Endogenous Regulation , 2005 .

[105]  Jean-Philippe Nicolaï,et al.  The Role of Abatement Technologies for Allocating Free Allowances , 2011 .

[106]  Hanna Hottenrott,et al.  Quantity or quality? Knowledge alliances and their effects on patenting , 2015 .

[107]  P. Dubois,et al.  Non Linear Contracting and Endogenous Buyer Power between Manufacturers and Retailers: Empirical Evidence on Food Retailing in France , 2010 .

[108]  Aviv Nevo.  A Practitioner's Guide to Estimation of Random‐Coefficients Logit Models of Demand , 2000 .

[109]  Marc Bataille,et al.  Intermodal competition on some routes in transportation networks: The case of inter urban buses and railways , 2013 .

[110]  Tim Friehe,et al.  Optimal Damages Multipliers in Oligopolistic Markets , 2015 .

[111]  Stefan Haigner,et al.  The first shall be last: serial position effects in the case contestants evaluate each other , 2010 .

[112]  Volker Benndorf,et al.  Competition in the Workplace: An Experimental Investigation , 2012 .

[113]  Achim Hauck,et al.  The euro area interbank market and the liquidity management of the eurosystem in the financial crisis , 2010 .

[114]  Tim Friehe,et al.  Competitive Pressure and Corporate Crime , 2016 .

[115]  Justus Haucap,et al.  On File Sharing With Indirect Network Effects Between Concert Ticket Sales and Music Recordings , 2012 .

[116]  Wieland Müller,et al.  Output Commitment Through Product Bundling: Experimental Evidence , 2013 .

[117]  David E. Mills.  Why Retailers Sell Private Labels , 1995 .

[118]  Tobias Wenzel,et al.  Strategic obfuscation and consumer protection policy in financial markets: Theory and experimental evidence , 2012 .

[119]  Tomaso Duso,et al.  Ex-Post Merger Evaluation in the UK Retail Market for Books , 2013 .

[120]  Pradeep Chintagunta,et al.  Investigating the Effects of Store-Brand Introduction on Retailer Demand and Pricing Behavior , 2002, Manag. Sci..

[121]  Hans-Theo Normann,et al.  Vertical Mergers, Foreclosure and Raising Rivals' Costs – Experimental Evidence , 2011 .

[122]  Tobias Wenzel,et al.  Getting beer during commercials: Adverse effects of ad-avoidance , 2011, Inf. Econ. Policy.

[123]  Geza Sapi,et al.  Consumer Flexibility, Data Quality and Targeted Pricing , 2013 .

[124]  A. Barth,et al.  Does the growth of mobile markets cause the demise of fixed networks? - Evidence from the European Union , 2014 .

[125]  Wolfgang Dauth,et al.  The Rise of the East and the Far East: German Labor Markets and Trade Integration , 2013, SSRN Electronic Journal.