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.
Bibliographical noteThe final publication is available at Springer via http://dx.doi.org/10.1007/s10842-014-0175-3
Funding: ESRC (UK)
- national pricing
- retail competition