Pricing, concentration & public policy: The U.S. automobile market

Impact of retail market concentration on differences in retailers' productivity and business results

“…The results obtained confirmed the previous research (Rickert, Schain, & Stiebale, 2018;Usova, 2017, Tansey, & Raju, 2017Petković et al, 2016;Pešić, 2015;Drašković, & Domazet, 2008)) concluding that the concentration of the retail market leads to improvement of the retailers' business performance, which may have some negative consequences for retail chains with low market share. As a result of such tendencies in the market, small independent retailers face lower turnover, non-competitiveness, loss of market, higher costs, and reduced negotiating power in relations with manufacturers, suppliers and large retail chains.…”

“…On the other hand, the research conducted by Tansey and Raju (2017) on the US auto parts retail market, shows that the horizontal integration of business entities directly affects the growth of profitability and business result, with the fact that a high degree of market concentration leaves little room for maintaining prices at the level of market equilibrium. Direct correlation between market concentration and profitability was confirmed by the research carried out by Hovhannisyan and Bozic (2016), which showed that the integration of retail enterprises has a positive statistically significant effect on the performance of retailers, whereby with an increase in concentration of 10%, there is an increase in the prices of dairy and food products in retail by 0.46%.…”

“…The retail sector of the Republic of Serbia has been facing significant changes in recent years in market concentration and the strengthening of horizontal and vertical competition, which is accompanied by a continuous reduction in the number of small independent retailers (Lovreta, Končar, & Petković, 2009). In academic research (Tansey, & Raju, 2017;Pešić, 2015;Lukić, 2010;Goodman, Kachur, Abdulla, Bloland, Mills, 2009;Lovreta, Končar, & Petković, 2009;Drašković, & Domazet, 2008;Bhattacharya, 2003;Aalto-Setala, 2002), the processes of retail market concentration and change of balance of power in value chains are becoming more and more current. Pešić (2015) and Ljubović, Pavlović, & Cvijanović, (2014) define market concentration as a degree in which a small number of enterprises can significantly affect certain economic activities, such as total turnover, assets or employment.…”

¿El poder de mercado está asociado a variaciones positivas de precios en estructuras oligopólicas? El caso de las marcas líderes por sus ventas en la industria automotriz mexicana (2018)

“…Por otro lado, la variación de precios se explica por análisis de los factores de producción, mediante la asociación de los elementos que intervienen en la producción y generan variaciones en la dispersión de los precios (Berry, Levinsohn y Pakes, 1999;Tansey y Raju, 2017); en lo que concierne a la diferenciación de productos, Scherer (1980) demostró que los precios no presentaban cambios importantes ante sus homónimos en equipamiento y clasificación: eran semejantes por categoría. En un contexto más actual, se muestra la variabilidad de precios derivada de las preferencias de consumidor, traducidas en tipo de producto y marcas; destaca la mayor sensibilidad de los consumidores ante los precios de los autos estadounidenses que frente a los europeos y japoneses (Sudhir, 2001); sin embargo, se omiten variables que implican la estimación de alteraciones de precios y su vinculación con los tipos de productos y niveles de equipamiento.…”

“…El análisis de precios constituye un tema de debate porque analiza desde el enfoque de la oferta para explicar su variabilidad en función de los factores de producción (Tansey y Raju, 2017), de modo que se acota la asociación entre el poder de mercado y el comportamiento de precios monopólicos con ciertos parámetros (Tansey y Raju, 2017). Sin embargo, algunos analistas abordan la sensibilidad de la demanda, la posibilidad de compra, los tipos de producto, los segmentos de mercado, el comportamiento de precios y el poder de mercado.…”