Price Transmission At The Micro-level: What Accounts For The Heterogeneity?

We use high-frequency scanner data to estimate product-specific price transmission elasticities across product types, between national brands and private labels and across retail chains in the UK. The results provide new insights into the determinants of price transmission including the role of vertical control in the retail chain, the elasticity of retail mark-ups and retailer market power. Using data on 106 orange juice products over 130 weeks for 7 UK retail chains, we highlight significant variation in price transmission bychain and that the characteristics of pricing behaviour and differences in vertical control across are important determinants of price transmission.


Issue Date:
Aug 29 2017
Publication Type:
Conference Paper/ Presentation
Language:
English
Total Pages:
14




 Record created 2017-08-01, last modified 2017-08-29

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