What was the challenge?

In November 2020, the New Zealand Government asked the Commerce Commission to carry out a study into whether competition in the grocery sector is working well, and if not, what could be done to improve it.

As part of its market study in the grocery sector of New Zealand, the Commerce Commission commissioned us to undertake some econometric analysis to examine how the structure of local grocery markets affects prices and margins in New Zealand. Economic theory suggests that the structure of a market is likely to influence the prices and margins in a market.

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