Jump to ContentJump to Main Navigation
Scanner Data and Price Indexes$
Users without a subscription are not able to see the full content.

Robert C. Feenstra and Matthew D. Shapiro

Print publication date: 2002

Print ISBN-13: 9780226239651

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226239668.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 29 June 2022

What Can the Price Gap between Branded and Private-Label Products Tell Us about Markups?

What Can the Price Gap between Branded and Private-Label Products Tell Us about Markups?

Chapter:
(p.165) 7 What Can the Price Gap between Branded and Private-Label Products Tell Us about Markups?
Source:
Scanner Data and Price Indexes
Author(s):

Robert Barsky

Mark Bergen

Shantanu Dutta

Daniel Levy

Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226239668.003.0009

This chapter utilizes an original data set that combines retail and wholesale data for a grocery store chain. The nature of manufacturing by copackers and its implications for marginal costs is then addressed. It is noted that marginal costs for private-label products are at least as high as—and in many cases higher than—marginal costs for the national brands with which they are paired. There is sufficient data to show that using private-label product prices to deduce national brand costs is a reasonable assumption in this industry. The retailer's markup on the national brand systematically exceeds its markup on the private label. It is also supposed that the products with the lowest markup ratios, such as canned tuna, frozen entrees, cheese, frozen juice, and bottled juice, have the highest share of materials. The data reveal that markups on nationally branded products sold in U.S. supermarkets are large.

Keywords:   grocery store chain, marginal costs, private-label products, national brands, retailer, markup, supermarkets

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.