The impact of retail regulation on consumer prices

Berezvai, Zombor ORCID: (2020) The impact of retail regulation on consumer prices. In: Competition and regulation 2020. Közgazdaság- és Regionális Tudományi Kutatóközpont Közgazdaság-tudományi Intézet, Budapest, pp. 133-155. .

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Eredeti megjelenése: Berezvai Zombor: A kiskereskedelmi szabályozás hatása a fogyasztói árakra. In: Valentiny Pál, Nagy Csongor István, Berezvai Zombor (szerk.): Verseny és szabályozás 2018. Budapest : MTA KRTK Közgazdaság-tudományi Intézet, 2019. pp. 76–97.


This paper studies the impact of the regulation of the retail sector on competition and consumer prices. We first perform an international analysis using OECD data. Our findings indicate that there is correlation between changes in retail regulation and changes in food prices, which suggests that regulation has an impact on competition between companies, and in turn has an impact on consumer prices. After this we look at two specific regulatory measures: the Sunday shopping ban and the regulation restricting the building of new stores with large floor area (known in Hungary as the “plaza-stop” act). In our study we analyse the average consumer price changes of 17 food products between 2006 and 2017 based on monthly data using FGLS panel regression method. Our findings show that the compulsory Sunday closing had no significant impact on consumer prices during the one year the regulation was in effect. On the other hand, modern retail formats and the penetration of international chains significantly reduced consumer prices. Based on this result, establishing entry barriers in retail had an unfavorable effect on consumers materializing in higher prices.

Item Type:Book Section
Uncontrolled Keywords:Retail regulations ; Consumer prices
Divisions:Institute of Marketing and Communication Sciences
Subjects:Commerce and tourism
ID Code:9928
Deposited By: MTMT SWORD
Deposited On:14 May 2024 07:20
Last Modified:14 May 2024 07:20

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