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Estimating Market Power and Pricing Conduct for Private- Label and National Brands in a Product-Differentiated Oligopoly: The Case of a Frozen Vegetable Market

Опубликовано на портале: 14-04-2005
Journal of Food Distribution Research. 2000.  Vol. 31. No. 2. P. 26-38. 
This paper develops two brand-level demand models, where prices are treated as endogenous, to estimate unilateral market power in a representative product-differentiated oligopolistic food market. The results are estimated using point-of-purchase scanner data and are used to quantify the impact of a private-label brand on the economic performance of national brands. Specifically, our study calculates demand parameter estimates and returns to retailer vertical coordination for the frozen vegetable market-the third largest private-label food and beverage category in the United States, after ice cream and carbonated beverages. Consistent with broader industry trends, empirical evidence suggests that the private-label brand maintained a slight competitive advantage over Birds Eye and Green Giant.

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