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- W1503178354 abstract "Pricing Power by Supermarket Retailers: A Ghost in the Machine? Timothy J. Richards and Geoffrey Pofahl JEL Classifications: L13, L66, Q13 During periods of rising prices, consumers, policymakers and media reporters alike tend to place the blame on food retailers (Boyle, 2009). Retail stores represent the final stop for most products on their way through manufacturers, distributors, brokers and wholesalers, so it is perhaps understandable why consumers tend to associate higher prices with profiteering, price-gouging and other nefarious conduct by retailers. Witness the well-publicized attempts to “cure” inflation in Zimbabwe and Venezuela by directly controlling retail prices, or the retailers themselves. Retailers represent a particularly easy target (no pun intended) because of their visibility and ubiquity. Indeed, the largest firm in the United States also happens to be the largest retailer— Wal-Mart Stores, Inc. It is not hard to understand, therefore, why retailers are often asked to explain why they are not trying harder to keep prices down, and why they need to be so big. Whether the perception that retailers possess excessive pricing power is consistent with reality, however, remains an important academic question. In this article, we review the existing literature on market power in food retailing, and describe an empirical framework necessary to provide a definitive answer to this question, if indeed one exists." @default.
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- W1503178354 date "2010-01-01" @default.
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- W1503178354 title "Pricing power by supermarket retailers: a ghost in the machine?" @default.
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