Private labels, also known as store brands, are an important component of competitive strategy among multi-product retailers, as they can increase retailers’ power over suppliers in the vertical channel or facilitate horizontal differentiation among retailers. This paper seeks to identify...

Many attribute the rise in obesity since the early 1980's to the overconsumption of fast food. A dynamic model of a different-product industry equilibrium shows that a firm with market power will price below marginal cost in a steady-state equilibrium. A spatial hedonic pricing model is used to...

Previous studies find that private labels increase retailers' bargaining power with manufacturers and allow retailers to price discriminate. We use a spatial discrete choice model to show that retailers also use store brands to create market power through store differentiation, but not as a...

In this paper, we propose a novel approach to estimating the effect of advertising on market performance that relies on the revealed preferences of firms participating in generic advertising programs. Generic advertising campaigns provide a unique window to observe advertising effects on market...

A central result in the theoretical literature on strategic trade is the ërent-shifting hypothesisí, the idea that governmentís can employ trade policy as a precommitment device to transfer profit from foreign to domestic firms. To our knowledge, however, the rent-shifting hypothesis remains...

A central result in the theoretical literature on strategic trade is the ?rent-shifting hypothesis?, the idea that government?s can employ trade policy as a precommitment device to transfer profit from foreign to domestic firms. To our knowledge, however, the rent-shifting hypothesis remains...

We devise a formal test of market power that is applied to the international durum market. The model captures the asymmetric cost structure brought about the initial payment system of the Canadian Wheat Board. The model generates testable hypotheses about market conduct and optimal strategic...

The effect of advertising on market performance has been a long-standing debate. Advertising that increases the dispersion of consumers’ valuations for advertised goods raises the market power of firms, while advertising that decreases the dispersion of consumers’ valuations leads to...