Buyer Power and Product Innovation: Empirical Evidence from the German Food Sector.

Arbeitspapier

Substantial increases in retail concentration (particularly in Europe) raise concerns about the welfare implications for consumers. In a formal model, we argue that retailer market power reduces upstream firms incentives to introduce new products. On the basis of a survey of firms in German food manufacturing, the results of a negative binomial regression model supports the proposition of a detrimental effect of retailer market power on product innovations. This effect is mitigated if manufacturing firms also have some market power (countervailing power). Innovations are positively related to firm?s market share in food manufacturing.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: FE Working Paper ; No. 0303

Classification and Topics

• Classification: Wirtschaft ; Innovation and Invention: Processes and Incentives ; Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
• Subject: Retailer market power ; product innovation ; food manufacturing ; Lebensmitteleinzelhandel ; Nachfragemacht ; Innovation ; Nahrungsmittelgewerbe ; Wirtschaftskonzentration ; Schätzung ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Weiss, Christoph R. ; Wittkopp, Antje
• Event: Veröffentlichung
• (who): Kiel University, Department of Food Economics and Consumption Studies
• (where): Kiel
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/23595
• Last update: 10.03.2025, 11:41 AM CET