Private Label Products as Experience Goods

Fabian Bergès-Sennou; Michael Waterson

doi:10.2202/1542-0485.1121

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Private Label Products as Experience Goods

Published/Copyright: December 21, 2005

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From the journal Journal of Agricultural & Food Industrial Organization Volume 3 Issue 2

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.

Keywords: private label; experience good; new good

Published Online: 2005-12-21

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Articles in the same Issue

https://doi.org/10.2202/1542-0485.1121

Keywords for this article

private label; experience good; new good