Estimating the extent of imperfect competition in the food industry: What have we learned?

Since the late-1980s, empirical analysis has typically analysed the extent of market power in the food industry using structural econometric models drawing on an approach commonly termed the new empirical industrial organisation (NEIO). In this paper, we examine what has been learned from the use of this methodology, and consider whether it has relevance for empirical analysis of market power in food retailing, and the nature of vertical contractual arrangements between food manufacturers and retailers.