Chain-Store Pricing and the Structure of Retail Markets
- Tags:
- Chain-stores,
- Competition,
- Management,
- Marketing,
- Marketing Research,
- Pricing,
- Retail,
- Strategy,
- University Of East Anglia
- Source:
- University of East Anglia
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Overview: This paper investigates competition between chain-stores and independents in the UK opticians' industry, using the relationship between the number of outlets present in a local market and the market size. Chain-stores are shown to have a significant effect on local market competition. In addition, the empirical approach is extended to allow inferences on the nature and extent of product differentiation. The results are broadly consistent with a model of vertical product differentiation in which chain-stores adopt national pricing strategies. The evidence suggests that the nature of competition between independent retailers depends on whether a chain-store is present.
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Format: PDF | Size: 275KB | Date: Apr 2006 | Pages: 36





