Chain-store pricing and the structure of retail markets

Research output: Working paper

Abstract

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.
Original languageEnglish
Place of PublicationNorwich (UK)
PublisherUniversity of East Anglia
Number of pages36
DOIs
Publication statusPublished - Apr 2006

Publication series

NameCCP working paper
PublisherCentre for Competition Policy
No.06-7
ISSN (Print)1745-9648

Keywords

  • chain-stores
  • product differentiation
  • national pricing

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  • Cite this

    Olczak, M. (2006). Chain-store pricing and the structure of retail markets. (CCP working paper; No. 06-7). University of East Anglia. https://doi.org/10.2139/ssrn.912173