Regional Impacts of the Kroger-Albertsons Merger: Insights from Professor John Mayo

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Ahead of the proposed Kroger-Albertsons merger, Professor John Mayo provides insights into the complex relationship between competition and grocery pricing. He explains that while competition plays a crucial role in driving grocery prices, its impact varies by region. More competitive markets tend to see price reductions after mergers, while less competitive areas may experience price increases. Mayo notes, “there’s been very mixed evidence about whether mergers in the grocery store industry have a deleterious effect on pricing,” highlighting the regional nuances in market consolidation’s effect on consumer costs.

Read the full article in the Los Angeles Times here.