Stabsseminar ved Frode Steen

Frode Steen, NHH, holder stabsseminar ved Institutt for foretaksøkonomi fredag 27. april.

25.04.2001 - Elin F. Styve

Tema er: Private Label Entry as a Competitive Force? An analysis of price responses in the Norwegian food sector

Tid og sted:
Fredag 27. april, kl. 1215-1330 i Karl Borchs Aud.

Abstract
According to existing theory, private labels have an ambiguous effect on prices on national brands. We undertake an empirical analysis of the effects of private label entry on national brand prices in the Norwegian food sector. We first estimate a set of 83 dynamic price regressions.
The results suggest that introduction of a private label typically leads to higher prices on national brands. However, we observe a large heterogeneity in price responses. When we apply a dynamic panel data approach, the same picture emerges. We find heterogeneity with both negative and positive significant price responses. However, we also establish that highly distributed and ranked products are typically more influenced by private label entry than less distributed and ranked products ("weaker" national brands). We also find some support in our data that more successful PL entry - as measured by the PL market share - have typically a larger impact on the national brand prices.

Hans K. Hvide (9283)