Food Prices and Market Structure in Sweden

20 Pages Posted: 6 Jun 2003

See all articles by Marcus Asplund

Marcus Asplund

London Business School - Department of Economics; Göteborg University - School of Business, Economics and Law; Centre for Economic Policy Research (CEPR)

Richard Friberg

Stockholm School of Economics - Department of Economics

Abstract

This paper examines retail grocery price levels across a large panel of stores in Sweden. We explain price variation across stores by market structure variables to capture differences in competition intensity and a number of store- and region-specific factors. Most of the explained variation in prices can be attributed to store-specific factors such as size and chain affiliation. Overall, the relation between market structure variables and food prices is weak, and effects are small in percentage terms. Nevertheless, higher local concentration of stores, higher regional wholesaler concentration and a lower market share of large stores are all correlated with higher prices.

JEL Classification: D43, L13, L81

Suggested Citation

Asplund, Marcus and Friberg, Richard, Food Prices and Market Structure in Sweden. Scandinavian Journal of Economics, Vol. 104, No. 4, pp. 547-566, 2002. Available at SSRN: https://ssrn.com/abstract=371855

Marcus Asplund (Contact Author)

London Business School - Department of Economics ( email )

Sussex Place
Regent's Park
London NW1 4SA
United Kingdom
+44 20 7262 5050 x3263 (Phone)

Göteborg University - School of Business, Economics and Law ( email )

SE- 405 30 Goteborg
Sweden
+46 31 773 2553 (Phone)
+46 31 773 1326 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Richard Friberg

Stockholm School of Economics - Department of Economics ( email )

P.O. Box 6501
Sveavagen 65
S-113 83 Stockholm
Sweden
+46 8 736 9645 (Phone)
+46 8 720 7752 (Fax)

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