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Transparency of Food Pricing (TRANSFOP)

Price adjustment along the food supply chain: the role of retailers and manufacturers

The primary objective of this research is to produce an in-depth analysis of retailers’ strategies and to assess how these strategies influence price adjustment across several EU Member States. Specifically, the aim is to analyse empirically the price strategies of retailers, with special reference to promotions, discounting and private labels; this will be done through a set of econometric models explaining the contribution of such strategies to the general trend of food prices. In addition, the research theme will modelling manufacturer-retailer relationships in order to understand the motivation for retailers’ pricing strategies analysed in this research theme and the price transmission mechanisms in a related theme. Since this research uses relatively new methods and applied to high frequency data acquired from commercial organisation, the methodology in addressing these issues will be applied to a more limited number of cases. This should be considered as additional insights rather than a systematic analysis. However, the case studies will cover different countries and products, in order to allow a comparison of the results across member states and across sectors.

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