scholarly journals Retail Market Power in a Shopping Basket Model of Supermarket Competition

2018 ◽  
Vol 94 (3) ◽  
pp. 328-342 ◽  
Author(s):  
Timothy J. Richards ◽  
Stephen F. Hamilton ◽  
Koichi Yonezawa
Keyword(s):  
Market Power ◽  
Retail Market ◽  
Shopping Basket ◽  
Basket Model

scholarly journals The impact of global trends on Czech trade in agrarian and foodstuff products

2011 ◽  
Vol 59 (4) ◽  
pp. 287-294
Author(s):  
Eva Rosochatecká ◽  
Luboš Smutka
Keyword(s):  
Market Power ◽  
Main Idea ◽  
Pilot Project ◽  
Multinational Companies ◽  
Market Force ◽  
Market Process ◽  
Retail Market ◽  
Global Trends ◽  
Retail Chains ◽  
The Impact

The Czech retail market has changed its structure and form during the last twenty years. The influence of two factors is especially significant. The first one is the growth of internationalization and the second one is market concentration growth. The significant opening process of the Czech economy, accompanied by the liberalization of the Czech market process, enabled the international retail companies to penetrate the national retail market. The most powerful European retail companies are now present in the Czech market. The available shopping area/cap is also one of the largest in Europe. Retail chains have taken a dominant position in the market, and because of their market power they are able to determine trade/contract conditions for domestic suppliers. Retail chains’ sales have been constantly growing. While in 2006 the value of sales was about 258.5 billion CZK, in 2008 it was about 312.2 billion CZK. The impact of the economic crisis on the Czech retail market has not been as stressful as it was abroad. In 2009, a slowdown of the Czech retail market was recorded, but the value of sales decreased by only 3 billion CZK (in comparison with 2008). The highest sales (59 billion CZK) were recorded by the Lidl & Schwarz-Gruppe, which is the owner of two dominant retail chains in the Czech retail market (Kaufland and Lidl). The main aim of the paper is to evaluate the selected aspects, which have been influencing the relationship between multinational companies (retail companies – supermarkets and hypermarkets) and local (Czech) suppliers of agrarian and foodstuff products (farmers and foodstuff companies). The paper analyses the problem of abuse of multinational companies’ significant market power in relation to their suppliers. Based on a pilot project, the efficiency of market force law, and its use in practice, are analysed. The main idea is to analyse the following problems: the impact of 30 days payment period for goods delivered, under cost prices required by retail companies, and the structure of fees and charges required by retail companies.

scholarly journals Rebalancing the Market Power. Manufacturer and Retailer Brands in the German Food Retail Market

2015 ◽  
Vol 48 (1) ◽  
pp. 21-44
Author(s):  
Andreas Bielig
Keyword(s):  
Market Power ◽  
Price Competition ◽  
Retail Market ◽  
Food Retail ◽  
Political Implications ◽  
Total Food ◽  
Market Coverage ◽  
German Food ◽  
The Empirical Analysis ◽  
Financial Losses

Abstract The German food retail market is considered to be one of the most competitive markets worldwide. A narrow oligopoly of domestic retail chains dominates competition at the national and regional levels, driven mostly by price competition and extensive market coverage. As a result, market entrance for potential newcomers is highly restricted, even for such global players like Wal-Mart, which retreated in 2006 after nine years of substantial financial losses in Germany. There have been discernable attempts by the domestic incumbents to rebalance the traditional “task division”, affecting the range of customers choices as well as retail brands. However, within ten years the share of large retailers brands earnings in the total food retail market increased from 21.8 percent to 38.8 percent in 2012, as “house brands” optimized their assortment, increased their independence from main suppliers and squeezed out competitors. The empirical analysis presented below describes the role played by different retail brands in German food retail market as measured by their market power, and considers its political implications.

scholarly journals Two-sided markets: An application to mobile termination in South Africa

2011 ◽  
Vol 4 (3) ◽  
pp. 183-202
Author(s):  
Nicola Theron ◽  
Johann Van Eeden
Keyword(s):  
South Africa ◽  
Market Power ◽  
The Other ◽  
Retail Market ◽  
Academic Literature ◽  
Mobile Market ◽  
Mobile Termination ◽  
Two Sided Markets

The concept of a two-sided market has received increased attention in the academic literature of late. In this paper we argue that the market for call termination is an example of a two-sided market. We apply the concepts of a two-sided termination market to the current attempts by ICASA to reduce mobile termination rates through regulation. We also deal with the concepts of significant market power (SMP) and established significant market power (ESMP), and show that the traditional thinking around market power has to be adapted when one deals with two-sided markets. More specifically, we analyse these concepts by looking at the position of Cell C, a smaller player in the mobile market in SA. We show that market power (and appropriate pro-competitive remedies) in call termination markets cannot be established without considering the origination (retail) market – the other side of the two-sided market.

Buyer Market Power and the Model of Vertical Restraints in Agribusiness

2019 ◽  
Vol 8 (2) ◽  
pp. 10-35
Author(s):  
Dipankar Das
Keyword(s):  
Market Power ◽  
Food Products ◽  
Vertical Restraints ◽  
Small Farmers ◽  
Retail Market ◽  
Food Commodities ◽  
Small Traders ◽  
Agricultural Food

This article considers an example of a vertical competition where downstream firms purchase agricultural food products from the consolidators (i.e. small traders) and the consolidators buy their saleable commodities from the small farmers. Here, the author identifies and explains a vertical model used by the large traders to collect the agricultural food products in India from the small farmers. The author tries to resolve the question whether it is possible to collect agricultural food products by the large traders at lower prices or not and to understand the competition between the small and large traders in agricultural food commodities in wholesale, as well as in the retail market in India.

Assessing retail market competition for multi-aquaculture products

2015 ◽  
Vol 42 (3) ◽  
pp. 462-476 ◽  
Author(s):  
Abdulai Fofana ◽  
Shabbar Jaffry
Keyword(s):  
Market Power ◽  
Structural Changes ◽  
Market Competition ◽  
Similar Data ◽  
Retail Market ◽  
Data Set ◽  
Content Type ◽  
Data Limitations ◽  
Aquaculture Products ◽  
The Uk

Purpose – The purpose of this paper is to investigate market competition for three product types of salmon (smoke, fresh and whole salmon) to understand whether supermarkets are exercising market power over salmon consumers in the UK retail market. Design/methodology/approach – Competition and the corresponding pricing conduct among supermarkets are tested by applying dynamic structural simultaneous system equations and using similar data set used by Jaffry et al. (2003). Findings – The results indicate that the market is competitive for fresh fillets and whole salmon but retailers appeared to exert some level of market power for smoke salmon. The hypothesis that market power is the same for all three products in the study was rejected; further indicating that the market for fresh products are competitive while retailers may be exercising market power over consumers for smoke salmon. Research limitations/implications – Current data limitations did not allow the investigation to cover the past few years in the modelling process. However, the results are still relevant as there have been no major structural changes in aquaculture products retailing landscape in the recent past. Practical implications – Concerns over the supermarkets’ exercise of market power over consumers have prompted the competition authorities to continue investigating the situation in the UK supermarket sector since 1996. The most recent investigation by competition authorities was in 2006. In all cases, no evidence of market power was found despite increased market concentration. Results from this study generally uphold the claim of the competition authorities in the UK. Originality/value – This is the first study to use a model within a structural econometric framework of firms to test for competitiveness of salmon products in the UK market place.

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