Supermarketprices Redux

Abstract

This study attempts to reconcile divergent results between two previous studies of CRJprice affects for supermarkets. A more complete data set from Kaufman and Handy is used in an earlier model by Marion et al. to determine if the differences are attributable to (1) model specifications, (2) interim structural change or (3) role of leading firm compared to all firms. The first two comparisons were indeterminate but the third provides some support for the CRJprice hypothesis compared to the size economy/service explanations. While not conclusive, these results argue for caution in rejecting SMSA supermarket concentration as an influence over prices