2017
DOI: 10.1111/joie.12153
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Retail Mergers and Food Prices: Evidence from France

Abstract: This paper analyzes the impact of a merger in the French supermarket industry on food prices. Using consumer panel data, we compare the changes in prices for merging and rival firms in affected and comparison markets. We use a novel definition of affected markets when some firms have a local pricing strategy and others a more centralized pricing strategy. We find that prices increase significantly following the merger, and that the merging firms lose market shares. For the rivals, the price increases are large… Show more

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Cited by 59 publications
(42 citation statements)
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“…In a closely related study, Allain et al. () measure price changes after a nationwide merger between two French food retailers using a difference‐in‐difference (DID) method with household purchase data. They find that the merger is positively correlated with the merging firms’ prices, and has significantly increased competitors’ prices.…”
Section: Related Literaturementioning
confidence: 99%
See 1 more Smart Citation
“…In a closely related study, Allain et al. () measure price changes after a nationwide merger between two French food retailers using a difference‐in‐difference (DID) method with household purchase data. They find that the merger is positively correlated with the merging firms’ prices, and has significantly increased competitors’ prices.…”
Section: Related Literaturementioning
confidence: 99%
“…There are a number of studies investigating the overall impact of mergers and acquisitions on prices (e.g., Allain, Chambolle, Turolla, & Villas‐boas, ; Ashenfelter, ; Hosken, Olson, & Smith, ), however the heterogeneous effects of the mergers on product types has not been studied. In this article, we fill this void by asking the following question: how do SB prices change in a product category relative to those of NBs after a merger or acquisition?…”
Section: Introductionmentioning
confidence: 99%
“…On the other hand, mergers resulting in estimated price decreases of more than 2% occurred mainly in markets with low levels of concentration. Similarly, Allain et al [2017] study the impact of a merger in the French supermarket industry on food prices, by comparing post merger changes in prices at stores located in local markets impacted by the merger with prices at stores located in comparison markets. Results report a significant price increase of about 4%5% for merging parties' stores, re gardless of their locations (i.e., impacted or not impacted by the merger), and a significant price increase of about 2% in competing brand stores that were locally impacted by higher market concentration.…”
Section: Ii(i) Ex Post Merger Evaluationmentioning
confidence: 99%
“…Allain et al. () use this propensity score estimator in estimating the effect of a major merger of French food retailers on consumer prices.…”
mentioning
confidence: 99%