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FE Working Papers, Department of Food Economics and Consumption Studies, CAU Kiel >
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http://hdl.handle.net/10419/23599
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| Titel: | | Buyer Power and Innovation of Quality Products: Empirical Evidence from the German Food Sector.  |
| Autoren: | | Weiss, Christoph R. Wittkopp, Antje |
| Datum: | | 2003 |
| Reihe/Nr.: | | FE Workingpaper / Universität Kiel, Department of Food Economics and Consumption Studies 0307 |
| Zusammenfassung: | | The last couple of decades have seen an increased retail concentration around
the world, particularly in Europe. Views on the welfare implications of this severe
change are controversial. Consumers might benefit because larger stores (owned by
larger retailer chains) offer more product choices. On the other hand, there is concern
that buyer power may force manufacturers ?to reduce investment in new products or
product improvements? [1].
This paper?s aim is to analyse whether retailer power affects food manufacturing firms
incentives to invest in innovation of high quality food products. On the basis of a formal
model, we find that retailer market power reduces upstream firms incentives to
introduce new products. This proposition is tested empirically on the basis of firm level
data from a survey of food manufacturing firms carried out in 2002 in Germany. Results
of multinomial logit model show a moderate and negative impact of retailer market
power on innovation of regular quality products. No such negative impact is observed
for premium quality products. Producers of premium products thus seem to more
effectively resist retailer market power in product innovation |
| Schlagwörter: | | Retailer market power innovation product quality multinomial logit model |
| Erscheint in der Sammlung: | | FE Working Papers, Department of Food Economics and Consumption Studies, CAU Kiel
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| Datei |
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Größe | Format |
| Fe0307.pdf | | 374,63 kB | Adobe PDF |
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