Chain-store pricing and the structure of retail markets

Matthew Olczak*

*Corresponding author for this work

Research output: Contribution to journalArticle

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 languageEnglish
Pages (from-to)87-104
Number of pages18
JournalJournal of Industry, Competition and Trade
Volume15
Issue number2
Early online date2 May 2014
DOIs
Publication statusPublished - Jun 2015

Bibliographical note

The final publication is available at Springer via http://dx.doi.org/10.1007/s10842-014-0175-3

Funding: ESRC (UK)

Keywords

  • chain-stores
  • national pricing
  • retail competition

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