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Abstract
The Brazilian retail sector has gone through expressive structural
transformations since the 90’s decade. Despite the high level of concentration, the retail
sector has presented evidences of strong rivalry among the top firms. This research aimed
to analize the impact of market concentration on the use of market power for specific agricultural products, through time series analysis of agricultural prices referring to the
São Paulo state. The empirical results indicated that the use of market power differs from
product to product, what suggests that retailers have been adopting specific strategies
according to the characteristics of products demand. The analysis of price asymmetry
showed that retailers tend to delay the transmission of price decreases and transmit
price increases more rapidly. Moreover, results indicate that the increase in rivalry in
the current decade has made it more difficult for retailers to use their market power
manipulating prices. In general, retailers were able to transmit price increases more
intensely before the year 2000, when the turnover level was lower and restricted to the
small and middle size firms.