Understanding Dynamic Retail Competition Through the Analysis of Strategic Price Response Using Time Series Techniques
2017
Dhar, Tirtha Pratim | Ray, Subhash
This paper analyzes strategic retail pricing behavior in fluid milk in Boston andNew York market using reduced form time series analysis. Pricing in Boston market isfound to be more strategic than in the New York market. Plausible reasons can be due toretail pricing laws, ownership structures of retail chains, and brand loyalty. This paperalso looks at the impact of North East Dairy Compact on retail pricing in Boston.Strategic pricing behavior in the Boston market changed dramatically and became lesscompetitive after the Compact.
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