Analysis of competition and concentration on the retail market in Poland based on the Linda index

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Małgorzata Pawłowska
Katarzyna Puchalska

Abstract

The aim of this paper is to examine the level of competition in the industry bringing together the largest chains of retail stores with a food profile in Poland. Annul firm level data for the years 2005-2018 was used. We find that in the years 2011-2018, the oligopolistic arena consisted of 7 enterprises, which indicates a certain stabilisation of the number of the largest players on the market. On the one hand, the difference between the Linda index values and the level of "perfect equilibrium of forces" (PE) is increasing, which proves the growing market power of the largest players, also confirmed by the growing values of the CR7 and HHI concentration index. On the other hand, the empirical analysis showed an increase in the effectiveness of the main players in the analysed period. Furthermore, this paper confirms the effective market structure hypothesis (ESH) in the industry that brings together the largest grocery store chains in Poland.(original abstract)

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Pawłowska, M., & Puchalska, K. (2019). Analysis of competition and concentration on the retail market in Poland based on the Linda index. Kwartalnik Kolegium Ekonomiczno-Społecznego. Studia I Prace, (4(40), 11–27. Retrieved from https://econjournals.sgh.waw.pl/kwes/article/view/3712
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