An analysis of price responses in the Norwegian food sector
نویسنده
چکیده
According to existing theory, the introduction of a private label has an ambiguous effect on the prices of competing national brands. We undertake an empirical analysis of the effects of private label entry on national brand prices in the Norwegian food sector. We first estimate a set of 83 dynamic price regressions. The results suggest that introduction of a private label typically leads to higher prices on national brands. However, we observe a large heterogeneity in price responses. When we apply a dynamic panel data approach, the same picture emerges. We find heterogeneity with both negative and positive significant price responses. However, we also establish that highly distributed and ranked products are typically more influenced by private label entry than less distributed and ranked products (“weaker” national brands). We also find some support in our data that more successful PL entry – as measured by the PL market share – have typically a larger impact on the national brand prices. * The authors are particularly grateful to Turid Marie Espeseth for her research assistance and to ACNielsen, Norway, for providing the dataset. We would also like to thank Øyvind Anti Nilsen and seminar participants at ACNielsen, NHH and the University of Bergen for valuable comments and suggestions. This research is partly financed by the Norwegian Research Council through SNF (The Foundation for Research in Economics and Business Administration).
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تاریخ انتشار 2003