The competitive implications of private label mergers

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Private label manufacturers not only compete with one another to become a retailer’s private label supplier, but they also must compete against branded items on the retail shelf, meaning that – when negotiating wholesale prices with retailers – the manufacturers must consider both of these distinct but entwined stages of competition.

The article presents how existing methods for assessing the likely competitive effects of horizontal mergers can be applied to the private label merger context, considering both stages at which private label products compete.