Channel Concentration and Retail Prices: Evidence from the Traditional Cheese Market of Cyprus

This study examines the impact of channel concentration on retail prices in the traditional cheese market of Cyprus. The analysis is based on a panel data model for retail prices and a non-linear simultaneous equations model for the estimation of market power. Our results suggest that retail cheese prices tend to be positively related to producer concentration and negatively related to channel concentration. We provide explanations for these results based on the structure-conduct-performance and countervailing buyer power models in published industrial organization studies.