We thank Xavier d'Haultfoeuille, Francis Kramarz, Sam Peltzman, Patrick Rey and participants at the UCL/IFS Supermarkets Conference, CEPR ESSET 2007 (Gerzensee), EEA (Budapest), EARIE (Valencia), ASSET (Padova), CRESSE and seminars at Oxford, Lille, DIW Berlin, DG COMP and Autorité de la Concurrence, as well as the Editor and two anonymous referees, for useful discussions and valuable comments. The views expressed are those of the authors only and do not reflect the views of any of the institutions they work or have worked for.
The Effects of Retail Regulations on Prices: Evidence from the Loi Galland
Article first published online: 16 JUL 2013
© 2013 The Author(s). The Economic Journal © 2013 Royal Economic Society
The Economic Journal
Volume 123, Issue 573, pages 1279–1312, December 2013
How to Cite
Biscourp, P., Boutin, X. and Vergé, T. (2013), The Effects of Retail Regulations on Prices: Evidence from the Loi Galland. The Economic Journal, 123: 1279–1312. doi: 10.1111/ecoj.12045
- Issue published online: 13 DEC 2013
- Article first published online: 16 JUL 2013
- Accepted manuscript online: 27 MAR 2013 06:51AM EST
- Manuscript Accepted: 8 DEC 2012
- Manuscript Received: 23 FEB 2011
Using a unique data set merging micro-store level data with grocery markets data, this article provides an empirical analysis of a legislation that had the same effect as allowing industry-wide price floors. It shows that, after the introduction of the legislation, the link between retail prices and market concentration has significantly been weakened. Price dispersion has dropped for branded products more than for store brands and price convergence appears to have taken place across stores. These results are consistent with recent theories on the anti-competitive effects of resale price maintenance in markets with interlocking relationships.