Abstract

In Europe, food retailing has become more concentrated and private label goods have spread over the last 40 years. They are now a key element of retailers' shelf offer. Using a model in which consumers become informed about the good's quality only in period two, we examine what determines the presence or absence of private label experience goods in supermarkets, taking into account the retailer's reputation commitment involved. Our most novel result is that for products purchased infrequently, introducing a reputable private label is unsustainable. However, more retailer bargaining power increases the likelihood of a private label good being marketed.

Submitted: July 26, 2005 · Accepted: December 13, 2005 · Published: December 21, 2005

Recommended Citation

Bergès-Sennou, Fabian and Waterson, Michael (2005) "Private Label Products as Experience Goods," Journal of Agricultural & Food Industrial Organization: Vol. 3 : Iss. 2, Article 9.
DOI: 10.2202/1542-0485.1121
Available at: http://www.bepress.com/jafio/vol3/iss2/art9