This study provides an empirical investigation of the relationship between grocery retail concentration and retail dairy prices in the US. We perform the analysis based on a unique dataset on store-level retail prices provided by the Information Resources Inc. Further, we consider alternative measures of retail concentration including revenue and store selling space-based Herfindahl Hirschman Index, which we compute using a Nielsen TDLinx dataset on store characteristics. Results from a reduced-from empirical framework estimated via panel data techniques indicate that grocery retail concentration affects dairy retail prices favorably. This central result is robust to the way that retail concentration is measured and is consistent with the empirical evidence from both the US and oversees.


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