Abstract

http://ssrn.com/abstract=1935212
 
 

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Assessing the Impact of Retailer Store Brand Presence on Manufacturer Brands in an Equilibrium Framework


Michael Andrew Cohen


New York University (NYU) - Department of Marketing

Ronald W. Cotterill


University of Connecticut - Department of Agricultural and Resource Economics

September 2011

The Journal of Industrial Economics, Vol. 59, Issue 3, pp. 372-395, 2011

Abstract:     
This article assesses the impact of retailer store brand products on manufacturer brand prices, profitability and consumer welfare in Boston's white fluid milk market. Estimates from a random coefficients logit demand model are used to specify and test a set of pricing games. Under the selected model, milk manufacturers are Stackelberg leaders to retailers, and store brand milks are procured by retailers at cost. The model is used to investigate counterfactual markets without retailer store brand milks. Counterfactual Simulation results indicate that store brands increase channel profits, retailer profits and consumer welfare, while having mixed effects on equilibrium retail prices.

Number of Pages in PDF File: 24

Accepted Paper Series


Date posted: September 29, 2011  

Suggested Citation

Cohen, Michael Andrew and Cotterill, Ronald W., Assessing the Impact of Retailer Store Brand Presence on Manufacturer Brands in an Equilibrium Framework (September 2011). The Journal of Industrial Economics, Vol. 59, Issue 3, pp. 372-395, 2011. Available at SSRN: http://ssrn.com/abstract=1935212 or http://dx.doi.org/10.1111/j.1467-6451.2011.00460.x

Contact Information

Michael Andrew Cohen
New York University (NYU) - Department of Marketing ( email )
Henry Kaufman Ctr
44 W 4 St.
New York, NY
United States
Ronald W. Cotterill
University of Connecticut - Department of Agricultural and Resource Economics ( email )
CT
United States
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References:  20
Citations:  1
Footnotes:  10

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