A Response to the Federal Trade Commission/Anderson Critique of Structure-Performance Studies in Grocery Retailing

This research report responds to the comprehensive critique of structure-price and structure profit studies in the food retailing industry by Keith Anderson, Staff Economist, Federal Trade Commission. Mr. Anderson's critique was in response to a request from certain members of the House Subcommittee on Monopolies and Commercial Law that the Federal Trade Commission explain why these studies should not serve as the basis for more rigorous enforcement of the antitrust laws. The introduction of this research report examines the evolution of this debate since the May 1988 hearings. Then Anderson's specific criticisms of the prior studies are addressed. The final section of this report contains some additional comments on Mr. Anderson's position, and identifies future research possibilities. Basic conclusions are: the research to date is not, as Anderson argues, flawed, it does support more rigorous enforcement of the antitrust laws, and given the advent of new electronic data bases, additional research will be forthcoming in the 1990s on the status of competition in the food retailing industry.Agribusiness, Industrial Organization,