Ignacio Cruz Roche

Price Differences in Consumer Goods in Retail Markets

Abstract This study analyses the effects that competition causes on the dispersion of prices in the mass market products. Therefore, a model is proposed that integrates the vertical, spatial and market environment factors that make up the competitive structure of the retail trade distribution sector. The results obtained, after processing a database of more than 19,000 records, indicate that various indicators of these three levels of competition exercise a decisive influence on determining the final prices of the analysed products. Likewise, the research allows verifying that there are significant differences in the effect caused by the analysed factors on the dispersion of prices, thereby depending on the considered product category (packaged goods versus fresh food).