Economics of Your Grocery Bill

Why is your local independent grocery store getting more expensive? The answer might not be wholesale prices, but a quiet shift in how food gets to the shelf.In this episode of EconWorks, we examine the competitive fallout when manufacturers like Mondelēz International discontinue Direct-Store-Delivery (DSD) for independent retailers. We move past the logistics to analyze the rigorous economic model behind* The Marginal Cost Shock: How moving to third-party wholesalers adds markups and inefficiencies that only affect independent stores.* Weakened Competition: Why higher costs for local shops allow large chains to raise their prices, even without a cost increase of their own.* The Robinson-Patman Act: Why unequal access to manufacturer-provided logistics may be a violation of federal antitrust law.Our most recent technical economic appendix served as the basis for this video. To view the complete specification, go to: This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit blog.econworks.com/subscribe