retailer's decision whether to carry an additional national brand or a store brand, and if the retailer chooses to introduce … the latter, where in product space to locate the store brand. Store brands differ from other brands in being both … store brand in a given category. We control for other motivations for carrying a store brand that have been used in the …

branded equivalent, while the retailer's margin on the national brand is an upper bound on the retailer's marginal handling … cost for both the brand and private label versions. We find that lower bounds on the 'full' markup ratio range from 3 …