Jump to ContentJump to Main Navigation
Show Summary Details
More options …

Journal of Agricultural & Food Industrial Organization

Ed. by Azzam, Azzeddine

2 Issues per year


CiteScore 2016: 0.70

SCImago Journal Rank (SJR) 2016: 0.223
Source Normalized Impact per Paper (SNIP) 2016: 0.660

Online
ISSN
1542-0485
See all formats and pricing
More options …

Buyer Power in U.K. Food Retailing: A 'First-Pass' Test

Tim Lloyd / Steve McCorriston / Wyn Morgan / Anthony Rayner / Habtu Weldegebriel
Published Online: 2009-05-25 | DOI: https://doi.org/10.2202/1542-0485.1253

The potential existence of buyer power in U.K. food retailing has attracted the scrutiny of the U.K.'s anti-trust authorities, culminating in the second of two comprehensive regulatory inquiries in recent years. Such inquiries are authoritative but correspondingly time-consuming and costly. Moreover, detection of buyer power has been dogged by the paucity of reliable evidence of its existence. In this paper, we present a simple theoretical model of oligopsony which delivers quasi-reduced form retailer-producer pricing equations with which the null of perfect competition can be tested using readily available market data. Using a cointegrated vector autoregression, we find empirical results that show the null of perfect competition can be rejected in seven of the nine food products investigated. Though not conclusive on the existence of buyer power, the proposed test offers a means via which the behaviour of the retail-producer price spread is consistent with it. At the very least, it can corroborate the concerns of the anti-trust authorities as to whether buyer power is potentially one source of concern.

Keywords: buyer power; cointegrated VARs; U.K. food industry

About the article

Published Online: 2009-05-25


Citation Information: Journal of Agricultural & Food Industrial Organization, ISSN (Online) 1542-0485, DOI: https://doi.org/10.2202/1542-0485.1253.

Export Citation

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston. Copyright Clearance Center

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[1]
Aaron Grau and Heinrich Hockmann
Agribusiness, 2017
[2]
Tim Lloyd
Journal of Agricultural Economics, 2017, Volume 68, Number 1, Page 3
[3]
Fabio A. Madau, Roberto Furesi, and Pietro Pulina
British Food Journal, 2016, Volume 118, Number 1, Page 70
[4]
Henry W. Kinnucan and Omer Tadjion
Agribusiness, 2014, Volume 30, Number 3, Page 278
[5]
Roberto Furesi, Fabio A. Madau, and Pietro Pulina
ECONOMIA AGRO-ALIMENTARE, 2013, Number 1, Page 123

Comments (0)

Please log in or register to comment.
Log in