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Atlantic Economic Journal

, 36:441 | Cite as

Imperfect Competition in German Food Retailing: Evidence from State Level Data

  • Sven M. AndersEmail author
Article

Abstract

An increase in the level of retail concentration in food markets across Europe has raised concerns about the implications of retail dominance in the food supply. This paper measures oligopoly and oligopsony market power in the German food retail industry and incorporate specific details about the German meat market and the European BSE crisis. In this paper, simultaneous estimates of the degree of oligopoly and oligopsony market power in the German food retail industry are derived by applying a set of monthly state level retail beef and pork marketing data in the federal state of Hessen, Germany, from 1995–2000. Results strongly suggest evidence of retail oligopoly and oligopsony power. Lerner index estimates indicate retail market power accounts for 0.5% to 11% of the retail unit margins of beef and pork.

Keywords

Food retailing Meat marketing Oligopoly Oligopsony Conjectural variation BSE Germany 

JEL

C10 C32 D21 L10 L13 L66 O50 Q13 R10 

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Copyright information

© International Atlantic Economic Society 2008

Authors and Affiliations

  1. 1.Department of Rural EconomyUniversity of AlbertaEdmontonCanada

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