Purpose – In France, the consumer prices of major industrial brands have been rising for a number of years, while the price differential between these brands and the retailers' ones has widened. These consequences were attributed to the French legislation, particularly to the Galland Act, enacted in 1996, which regulated the banning of below cost resale. The aim of this paper is to explain the effects of the legislation on price competition within the grocery sector and to analyse the effects of the Dutreil Act, enacted in 2005, which modified the Galland Act.
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Colla et al. (2008) studied this question.
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