Abstract
This paper examines competition between chain-stores and independent retailers in the UK retail opticians' market. We demonstrate that the pricing policy adopted by chain-stores can determine the impact their entry has on independent retailers. Crucially, in this market the chain-store retailers set an identical national price across all local markets. Our results suggest that this pricing strategy lessens the detrimental effect competition from chain-stores has on independent retailers.
Original language | English |
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Pages (from-to) | 87-104 |
Number of pages | 18 |
Journal | Journal of Industry, Competition and Trade |
Volume | 15 |
Issue number | 2 |
Early online date | 2 May 2014 |
DOIs | |
Publication status | Published - Jun 2015 |
Bibliographical note
The final publication is available at Springer via http://dx.doi.org/10.1007/s10842-014-0175-3Funding: ESRC (UK)
Keywords
- chain-stores
- national pricing
- retail competition