Price Rigidity and Market Power in German Retailing

This paper presents empirical evidence on the interplay important topics of consumer price rigidity and market power in the German food retail industry. In particular, the analysis addresses the causal relationship between market structure - collusion - and pricing behaviour highlighted in the industrial organization literature. Extensive analysis of retail scanner data across beef and pork products reveals considerable differences in price rigidity across store types. Supermarket pricing behaviour is evaluated with respect to all price changes, retail sales actions and price adjustments indicating that food discounters exhibit the highest degree of rigid prices. Retail concentration, as an important explanatory factor of price stickiness is investigated via the analysis of retail market power employing a conjectural variation approach. The analysis of market conduct in the marketing of beef and pork products indicates simultaneous oligopolistic and oligopsonistic behaviour of retail firms. --

Grocery retailing in Germany: Situation, development and pricing strategies

Like many other industrialised countries Germany has experienced a powerful concentration process in food retailing. There are some issues, however, which make Germany a special case in Europe and among industrialised countries in general. This holds true in terms of market structure and concentration, market development and pricing strategies. The market share of hard discounters like Aldi and Lidl has grown continuously in recent decades and the market share of discounters in general has reached a magnitude that is well above that found in other European countries. This has led to robust price competition in German food retailing. Along with this development, it has been very difficult for inward foreign direct investment (FDI) to gain ground in the German food retailing industry. One example was the market entry by Wal-Mart which, given its initial ambitious goals, was not successful. On the other hand, German hard discounters have strongly affected outward FDI by other German food retailers. In the process of expanding into other markets abroad, these companies have had a positive impact on exporting by the German food industry. This article describes and analyses these major trends in German food retailing in detail. It is organised as follows. The structure of food retailing is described and explained in Section 2. Section 3 deals with the importance of inward and outward FDI in German food retailing. It is discussed in both sections how increased concentration in food retailing affects the marketing chain. Price competition is intense in Germany, and studies of food pricing strategies have used scanner data. Therefore a special case study in Section 4 is the analysis of food pricing strategies in Germany based on scanner-data evidence. The analysis shows that the pricing behaviour of food retailers is characterised by the every-day-low-pricing (EDLP) strategies of discounters and the high-lowpricing (HiLo) strategies of their major competitors. The main elements of pricing policies are indicative of firms' market power: repeated price discounts for major food brands, frequent changes of loss leaders, the dominant role of psychological pricing, and a strong price rigidity for all other foods which are not on special offer. --

Grocery retailing in Poland: Structural changes and foreign direct investment

The development of the Polish food retailing sector is very interesting. With the transition from a socialist to a market economy, structural change in the retailing sector has been especially rapid and the new open markets in Poland have attracted foreign investors throughout the economy in general and in the foodretailing sector in particular. This article describes and analyses the major trends in Polish food retailing. It is organised as follows. The structure of food retailing is described and explained in Section 2, first at the store-type level and then at the firm level. How the powerful concentration process in food retailing has affected the marketing chain is also discussed. Inward foreign direct investment (FDI) in Polish food retailing is covered in Section 3. Given the special importance of FDI in the Polish economy during the transition process, an analysis is carried out of the determinants of FDI in retailing within a cross-country dataset and with a particularly detailed look at FDI in Poland. The results are summarised in Section 5. --

Policy Impacts in the Dairy Supply Chain: The Case of German Whole Milk Powder

The dairy sector is one of the most important agro-food markets in the European Union (EU). In addition to the fresh dairy products, cheese and butter considerable amounts of other dairy products with long sell-by dates are produced like skimmed milk, semi skimmed milk and whole milk powder. These products have some advantages in longer storage periods and easy transportation and thus they are often designated not only for domestic storage but also for international markets. As other internationally traded dairy products milk powders depict remarkable price variations in the last years which do find good matches in the domestic markets. Despite these variations the German industry regards milk powder as an interesting product for further investments driven by luminous international demand prospects. So the likely impacts between the international and the domestic prices movements are an important topic for the German dairy industry as well as German milk producers.In the past, the EU dairy market has been highly supported by the Common Market Organization (CMO) while, at the same time, milk supply has been restricted by the milk quota regime. High administrative price for dairy products were protected by significant import tariffs isolating the EU dairy sector from international trade. In addition, exports subsidies allowed successful competition with exports from third countries, not only for intervention products but also for other dairy products like whole milk powder. However, with the restructuring of the support starting with the Agenda 2000, the coupled market price support in form of intervention prices of butter and skimmed milk powder were stepwise reduced in favour of decoupled payments. Also invention purchases were restricted and the abolition of the milk quota regime was announced for 2014/15 and phased in by yearly increases of the national quotas. At the same time applied export refunds were suspended for most dairy products

Driving factors for school milk demand in Germany

School milk consumption has declined steadily in Germany. A research project was set up to retrieve quantifiable information on the different factors of influence and to develop solutions to improve the school milk consumption.. The main goal is to evaluate the impact of price, product range, distribution form, information campaigns, regional situation, county based social index, socially-funded school milk distribution, and gender shares, as well as the immigration background share within a class. A total of 400 primary schools were selected by stratified random sampling. Surveys for principals and school milk managers were used to gain information on distribution problems throughout the milk chain, on the handling, and their attitudes towards school milk and milk in general. The price of school milk is being reduced stepwise in the 2008/09 school year. The quantity of consumption is reported per class. A multilevel analysis is applied to determine the factors driving consumption at the class level. First results will be validated. The paper comprises an extended introduction, followed by the research approach. A descriptive analysis is given following a detailed description of the experiment.. The estimation procedure is discussed before the results are presented. Finally, a qualification of outcomes and conclusions concerning further research are found.School Milk, Demand Subsidy, Food Demand, Multilevel Analysis., Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety,

School Milk Consumption in Germany - What are Important Product Attributes for Children and Parents?

Food Consumption/Nutrition/Food Safety,

School milk demand in Germany: The role of individual and contextual factors - preliminary results

Replaced with revised version of paper 12/01/11.Demand and Price Analysis,

Abuse of nutmeg seeds: Detectable by means of liquid chromatography-mass spectrometry techniques?

Numerous case reports of intoxications with nutmeg seeds (Myristica fragrans, Houtt.) can be found in literature often following their abuse, as psychotropic effects were described after ingestions of large doses. The successful detection of the main ingredients of the nutmeg seeds essential oil elemicin, myristicin, and safrole, as well as their metabolites in human urine by gas chromatography coupled to mass spectrometry (GC-MS) was already described. The aim of this study was to investigate the detectability of the main ingredients of nutmeg seeds and their metabolites in human blood and urine samples using liquid chromatography coupled to linear ion trap mass spectrometry (LC-LIT-MSn ) and liquid chromatography coupled to high-resolution mass spectrometry (LC-HRMS/MS) after nutmeg seed abuse. Sample material of three individuals was retrospectively investigated after a systematic screening approach indicated an intoxication with nutmeg seeds as a likely cause of symptoms. Metabolic patterns in plasma and urine using GC-MS were comparable with those described in earlier publications. Investigations using hyphenated liquid chromatography techniques lead to the detection of myristicin and safrole, as well as further metabolites not described using GC-MS and revealed sulfation as an additional Phase II metabolic pathway. These results might help to detect or confirm future intoxications with nutmeg seeds by using LC-MS techniques

Sinkende Schulmilchnachfrage in Deutschland -- Woran kann es liegen?

Schulmilch, Einflussfaktoren, Nachfrage, Preise, Beihilfe, Multilevel-Analyse, Consumer/Household Economics, Demand and Price Analysis,

Light-Controlled Affinity Purification of Protein Complexes Exemplified by the Resting ZAP70 Interactome

Multiprotein complexes control the behavior of cells, such as of lymphocytes of the immune system. Methods to affinity purify protein complexes and to determine their interactome by mass spectrometry are thus widely used. One drawback of these methods is the presence of false positives. In fact, the elution of the protein of interest (POI) is achieved by changing the biochemical properties of the buffer, so that unspecifically bound proteins (the false positives) may also elute. Here, we developed an optogenetics-derived and light-controlled affinity purification method based on the light-regulated reversible protein interaction between phytochrome B (PhyB) and its phytochrome interacting factor 6 (PIF6). We engineered a truncated variant of PIF6 comprising only 22 amino acids that can be genetically fused to the POI as an affinity tag. Thereby the POI can be purified with PhyB-functionalized resin material using 660 nm light for binding and washing, and 740 nm light for elution. Far-red light-induced elution is effective but very mild as the same buffer is used for the wash and elution. As proof-of-concept, we expressed PIF-tagged variants of the tyrosine kinase ZAP70 in ZAP70-deficient Jurkat T cells, purified ZAP70 and associating proteins using our light-controlled system, and identified the interaction partners by quantitative mass spectrometry. Using unstimulated T cells, we were able to detect the known interaction partners, and could filter out all other proteins