Retailer concentration and product innovation in food manufacturing

Christoph R. Weiss

56 citations0/0 files storedEuropean Review of Agricultural Economics

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Merger and Competition Analysis Economics of Agriculture and Food Markets Consumer Market Behavior and Pricing

Abstract

The increasing concentration of retailing in many countries (particularly in Europe) is a cause for concern for competition authorities. In a formal model, we argue that retailer market power influences upstream firms' incentives to introduce new products. On the basis of a survey of German food manufacturing firms, the results of a negative binomial regression model suggest a detrimental effect of retailer market power on product innovation. This effect is mitigated if manufacturing firms also have some market power (countervailing power). Innovations are positively related to the firms' market share.

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References

2010Capitalism, Socialism and Democracy 2000Economic Analysis of Social Interactions 1964A Theory of Oligopoly 1991Innovation and small firms 2001Do People Mean What They Say? Implications for Subjective Survey Data 1997Countervailing Power and Consumer Prices 2009The Measurement of Scientific and Technological Activities 2006Buyer power and supplier incentives

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2014Patents, research & development and technological cooperation in the Spanish agri-food industry

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