Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/88789
Authors: 
Haucap, Justus
Heimeshoff, Ulrich
Klein, Gordon J.
Rickert, Dennis
Wey, Christian
Year of Publication: 
2013
Series/Report no.: 
DICE Discussion Paper 101
Abstract: 
This paper analyses the extent of inter-format retail competition between supermarkets, discounters and drugstores in Germany, using data from the German market for diapers. We estimate a random coefficient logit model at the individual household level. Based on consumer substitution patterns, we calculate manufacturers' and retailers' estimated marginal costs and margins and, based on these margins, apply standard market delineation techniques which suggest that the strongest substitution patterns are between the leading manufacturer brand and private labels sold at drugstores and discounters. This finding contrasts with recent speculations by competition authorities that private label products may belong to a different antitrust market than manufacturers' brands.
Subjects: 
Discrete Choice
Demand Estimation
Market Delineation
Grocery Retail Markets
Antitrust
JEL: 
L1
L4
L8
C5
ISBN: 
978-3-86304-100-7
Document Type: 
Working Paper

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