Private label expansion and supermarket milk prices

Alessandro Bonanno; Rigoberto A. Lopez

doi:10.2202/1542-0485.1085

Private label expansion and supermarket milk prices

Alessandro Bonanno, Rigoberto A. Lopez

Agricultural Economics, Sociology and Education

Research output: Contribution to journal › Article › peer-review

22 Scopus citations

Abstract

This article investigates the impacts of private labels (PLs) on fluid milk prices and price differentials using 2,759 supermarket-level observations from 10 cities. Non-parametric results reveal that although PL milk prices decrease as PL milk shares expand, eventually the effect is to increase the prices of manufacturers' brands as well as the price gap between private labels and manufacturers' brands. Econometric results further reveal that supermarkets exert some degree of price discrimination through controlling the brands of milk sold.

Original language	English (US)
Journal	Journal of Agricultural and Food Industrial Organization
Volume	3
Issue number	1
DOIs	https://doi.org/10.2202/1542-0485.1085
State	Published - 2005

All Science Journal Classification (ASJC) codes

Food Science
Business, Management and Accounting(all)
Economics and Econometrics

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10.2202/1542-0485.1085

Cite this

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title = "Private label expansion and supermarket milk prices",

abstract = "This article investigates the impacts of private labels (PLs) on fluid milk prices and price differentials using 2,759 supermarket-level observations from 10 cities. Non-parametric results reveal that although PL milk prices decrease as PL milk shares expand, eventually the effect is to increase the prices of manufacturers' brands as well as the price gap between private labels and manufacturers' brands. Econometric results further reveal that supermarkets exert some degree of price discrimination through controlling the brands of milk sold.",

author = "Alessandro Bonanno and Lopez, {Rigoberto A.}",

note = "Funding Information: Author Notes: This work was supported by the USDA-CSREES special grant No. 2003-34178-13469 via the Food Marketing Policy Center at the University of Connecticut and the Storrs Agricultural Experiment Station. The authors are thankful to an anonymous referee for insightful comments on a previous draft. The content of the paper, however, is the sole responsibility of the authors. The authors are Ph.D. student and professor, respectively, in the Department of Agricultural and Resource Economics, Storrs, CT 06269-4021, USA [corresponding author: R. Lopez, telephone: (860) 486-1921, email: Rigoberto.Lopez@uconn.edu].",

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AB - This article investigates the impacts of private labels (PLs) on fluid milk prices and price differentials using 2,759 supermarket-level observations from 10 cities. Non-parametric results reveal that although PL milk prices decrease as PL milk shares expand, eventually the effect is to increase the prices of manufacturers' brands as well as the price gap between private labels and manufacturers' brands. Econometric results further reveal that supermarkets exert some degree of price discrimination through controlling the brands of milk sold.

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Private label expansion and supermarket milk prices

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