Journal ArticleDOI
Market-structure determinants of national brand-private label price differences of manufactured food products
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TLDR
In this article, the relationship between market structure and the Lerner index of monopoly constructed from price data on processed food products sold through grocery stores was investigated, and the results indicated that the three principal determinants of price-cost margin variation, in order of their impacts, are: advertising intensity, elasticity of demand and concentration.Abstract:
This paper estimates the relationships between market structure and the Lerner index of monopoly constructed from price data on processed food products sold through grocery stores. A theoretical model of a differentiated oligopoly specifies two determinants of price-cost margins: the Herfindahl-Hirschman index of seller concentration adjusted for the elasticity of demand and the industry advertising-to-sales ratio. The results indicate that the three principal determinants of price-cost margin variation, in order of their impacts, are: advertising intensity, elasticity of demand, and concentration. Previous structure-performance studies that did not incorporate the elasticity of demand were probably misspecified.read more
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The economic analysis of advertising
TL;DR: A comprehensive survey of the economic analysis of advertising can be found in this article, with a focus on positive and normative theories of monopoly advertising, price and non-price advertising, theories of advertising and product quality, and theories that explore the potential role for advertising in deterring entry.
Journal ArticleDOI
Bank market power and sme financing constraints
TL;DR: In this article, the Lerner index was used as an alternative to traditional measures of concentration in the industrial organization literature to measure market power in corporate lending relationships, and the results showed that the results are sensitive to the choice between IO margins and traditional concentration measures.
Journal ArticleDOI
Who Benefits from Store Brand Entry
Koen Pauwels,Shuba Srinivasan +1 more
TL;DR: In this article, the authors demonstrate permanent performance effects of store brand entry, typically benefiting the retailer, the consumers, and premium-brand manufacturers, while harming second-tier brand manufacturers.
Journal ArticleDOI
Why Retailers Sell Private Labels
TL;DR: In this article, the authors interpret private label marketing as a retailer instrument for overcoming the double-marginalization problem inherent in the distribution of well-known manufacturer brands, and present a formal model and deriving analytical results.
Journal ArticleDOI
Manufacturer-Retailer Channel Interactions and Implications for Channel Power: An Empirical Investigation of Pricing in a Local Market
TL;DR: In this article, the authors provide an empirical method to measure the power of channel members and to understand the reasons demand factors, cost factors, and nature of channel interactions for this power.
References
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Journal ArticleDOI
Advertising as Information
TL;DR: In this paper, the major features of the behavior of advertising can be explained by advertising's information function, and it is shown that the most important information conveyed by advertising is simply that the brand advertises.
Book
Barriers to new competition
TL;DR: In this paper, a series of hypotheses as to the conditions of entry, and the probable degree to which they serve as barriers to new competition are presented, and a bold attempt is made to measure the height of these barriers in 20 manufacturing industries.
Book ChapterDOI
The Concept of Monopoly and the Measurement of Monopoly Power
TL;DR: In this article, the authors investigate the economic aspects of the monopolist's power to decide the price of a commodity, leaving it to the buyers to decide how much they will buy at that price, or, alternatively, to decide a quantity he will sell, by so fixing the price as to induce buyers to purchase just this quantity.
Posted Content
Inter-industry studies of structure and performance
TL;DR: The authors discusses inter-industry studies of the relations among various measures of market structure, conduct, and performance, and discusses that tradition has indeed uncovered many stable, robust, and empirical regularities.