×

Brand name and private label price setting by a monopoly store. (English) Zbl 1253.91096

Summary: A monopoly that sells to brand-name loyal customers and to price-sensitive customers must decide whether to carry both name-brand and private-label products and how much to charge. The monopoly may charge either more or less for the brand name if it carries a private label, and the price differential between the products is sensitive to cost and taste parameters.

MSC:

91B38 Production theory, theory of the firm
90B60 Marketing, advertising
PDFBibTeX XMLCite
Full Text: DOI

References:

[1] Barsky, R.; Bergen, M.; Dutta, S.; Levy, D., What can the price gap between branded and private-label products tell us?, (Feenstra, R. C.; Shapiro, M. D., Scanner Data and Price Indexes (2003), University of Chicago Press: University of Chicago Press Chicago), 165-225
[2] Chintagunta, P. K.; Bonfrer, A.; Song, I., Investigating the effects of store-brand introduction on retailer demand and pricing behavior, Man. Sci., 48, 1242-1267 (2002)
[3] Horowitz, I., An option-pricing look at the introduction of private labels, J. Operational Res. Soc., 51, 221-230 (2000) · Zbl 1107.91339
[4] Salop, S. C., The noisy monopolist: imperfect information, price dispersion, and price discrimination, Rev. Econ. Stud., 44, 393-406 (1977) · Zbl 0382.90013
[5] Ward, M. B.; Shimshack, J. P.; Perloff, J. M.; Harris, J. M., Effects of the private-label invasion in food industries, Amer. J. Ag. Econ., 84, 961-973 (2002)
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. In some cases that data have been complemented/enhanced by data from zbMATH Open. This attempts to reflect the references listed in the original paper as accurately as possible without claiming completeness or a perfect matching.