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Rivalry in Price and Variety among Supermarket Retailers
Recent theoretical models of retail competition suggest that product heterogeneity is critical to retail price and variety strategies. This article provides empirical evidence on supermarket retailers' price and variety strategies using a nested constant elasticity of substitution (NCES) modeli...
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| Published in: | American journal of agricultural economics 2006-08, Vol.88 (3), p.710-726 |
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| Main Authors: | , |
| Format: | Article |
| Language: | English |
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| cited_by | cdi_FETCH-LOGICAL-c668X-ac70f33be7140911bf34b450a50c85830d7dd766c1a22d6d59fe49c613d3e71a3 |
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| cites | cdi_FETCH-LOGICAL-c668X-ac70f33be7140911bf34b450a50c85830d7dd766c1a22d6d59fe49c613d3e71a3 |
| container_end_page | 726 |
| container_issue | 3 |
| container_start_page | 710 |
| container_title | American journal of agricultural economics |
| container_volume | 88 |
| creator | Richards, Timothy J. Hamilton, Stephen F. |
| description | Recent theoretical models of retail competition suggest that product heterogeneity is critical to retail price and variety strategies. This article provides empirical evidence on supermarket retailers' price and variety strategies using a nested constant elasticity of substitution (NCES) modeling framework. The model is estimated using chain-level scanner data for four major grocery chains in a large, urban West Coast market. The results show that retailers compete for market share using both price and variety. While they all tend to follow moderately cooperative pricing strategies, the extent to which they follow cooperative strategies in variety is less homogeneous. |
| doi_str_mv | 10.1111/j.1467-8276.2006.00890.x |
| format | article |
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While they all tend to follow moderately cooperative pricing strategies, the extent to which they follow cooperative strategies in variety is less homogeneous.</description><subject>Agricultural economics</subject><subject>Agricultural products</subject><subject>Brands</subject><subject>Category management</subject><subject>Chain stores</subject><subject>Competition</subject><subject>Consumers</subject><subject>Cost estimates</subject><subject>Economic competition</subject><subject>Economic models</subject><subject>Economic statistics</subject><subject>Economic theory</subject><subject>Equilibrium</subject><subject>Food prices</subject><subject>Fruits</subject><subject>Game theory</subject><subject>Grocery stores</subject><subject>L110</subject><subject>L130</subject><subject>L810</subject><subject>Market prices</subject><subject>Market share</subject><subject>Market shares</subject><subject>Marketing</subject><subject>Monopolistic competition</subject><subject>nested CES</subject><subject>price competition</subject><subject>Price elasticity</subject><subject>Pricing policies</subject><subject>Product development</subject><subject>Product lines</subject><subject>Retail stores</subject><subject>Retail trade</subject><subject>retailing</subject><subject>Retailing industry</subject><subject>Shopping</subject><subject>Studies</subject><subject>Supermarkets</subject><subject>U.S.A</subject><subject>variety</subject><issn>0002-9092</issn><issn>1467-8276</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2006</creationdate><recordtype>article</recordtype><sourceid>8BJ</sourceid><recordid>eNqNkVFP2zAUhS3EJArbP-Ah4mFvya7jxI4fu6prh1ptsIEqXq7cxEEJadLZCbT_fk4z9QGBNL9Y1nfO0b3HhHgUAurOlzKgERd-EgoehAA8AEgkBLsTMjqCUzICgNCXIMMzcm5t6Z5AZTIiyW3xrCqz94ra-2mKVHuqzrx7ZQrd7j21aepH71e31WajzJNuvVvdqqLSxn4kH3JVWf3p331B7r5Nf0_m_uLH7PtkvPBTzpOVr1IBOWNrLWgEktJ1zqJ1FIOKIU3ihEEmskxwnlIVhhnPYpnrSKacsow5j2IX5POQuzXNn07bFjeFTXVVqVo3nUXGYwEyYk549UpYNp2p3WwYMka5EAKcKBlEqWmsNTrHrSncanukgH2fWGJfG_a1Yd8nHvrEnbMuB-uL23__3z4cX4-n1z3rUU8OYOXy2JDXdNt30vy3prgcXKVtG3P0MS6F4P1-_oAL2-rdEbu_Qy6YiHG-esCb-Gu8mIl7XLK_Ku6lFw</recordid><startdate>200608</startdate><enddate>200608</enddate><creator>Richards, Timothy J.</creator><creator>Hamilton, Stephen F.</creator><general>Oxford University Press</general><general>American Agricultural Economics Association</general><general>Blackwell Publishing Ltd</general><scope>BSCLL</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>7ST</scope><scope>8BJ</scope><scope>C1K</scope><scope>FQK</scope><scope>JBE</scope><scope>SOI</scope></search><sort><creationdate>200608</creationdate><title>Rivalry in Price and Variety among Supermarket Retailers</title><author>Richards, Timothy J. ; 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| ispartof | American journal of agricultural economics, 2006-08, Vol.88 (3), p.710-726 |
| issn | 0002-9092 1467-8276 |
| language | eng |
| recordid | cdi_proquest_miscellaneous_36570943 |
| source | EconLit s plnými texty; EBSCOhost Business Source Ultimate; International Bibliography of the Social Sciences (IBSS); JSTOR Archival Journals and Primary Sources Collection【Remote access available】; Wiley-Blackwell Read & Publish Collection |
| subjects | Agricultural economics Agricultural products Brands Category management Chain stores Competition Consumers Cost estimates Economic competition Economic models Economic statistics Economic theory Equilibrium Food prices Fruits Game theory Grocery stores L110 L130 L810 Market prices Market share Market shares Marketing Monopolistic competition nested CES price competition Price elasticity Pricing policies Product development Product lines Retail stores Retail trade retailing Retailing industry Shopping Studies Supermarkets U.S.A variety |
| title | Rivalry in Price and Variety among Supermarket Retailers |
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