Spatial competition and private labels

Timothy Richards, Stephen F. Hamilton, Paul M. Patterson

Research output: Contribution to journalArticle

7 Scopus citations

Abstract

Private labels, also known as store brands, are an important component of competitive strategy among multi-product retailers, as they can increase retailers' power over suppliers in the vertical channel or facilitate horizontal differentiation among retailers. This paper seeks to identify the relative importance of each role, conditional on the location of both private labels and national brands of ice cream in attribute space. We find that retailers' share of the total margin (retail price less production cost) is higher for private labels than national brands when retailers choose to imitate national brands with their own offerings.

Original languageEnglish (US)
Pages (from-to)183-208
Number of pages26
JournalJournal of Agricultural and Resource Economics
Volume35
Issue number2
StatePublished - Aug 1 2010

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Keywords

  • Multi-product oligopoly
  • Nested logit
  • Private labels
  • Retailing
  • Spatial modeling

ASJC Scopus subject areas

  • Animal Science and Zoology
  • Agronomy and Crop Science
  • Economics and Econometrics

Cite this

Richards, T., Hamilton, S. F., & Patterson, P. M. (2010). Spatial competition and private labels. Journal of Agricultural and Resource Economics, 35(2), 183-208.