Economics Case Study

The current inflation rate (annual increase in price level) for goods sold in supermarkets (“dailies” or “everyday goods” like food etc.) is 7.9 per cent, i.e. the supermarkets have to pay 7.9 per cent higher prices upstream to the producers of the goods. On average, the price increase consists of:

  • 6 per cent points increase in energy prices because of the worldwide energy price increase,
  • 6 per cent points increase because of ongoing frictions in the supply chains as a consequence of the pandemic lock downs and distortions,
  • 5 per cent points increase because of quality / technological improvements of the goods (including trends for more biological and more regional supply),
  • 4 per cent points increase because of increasing wage costs upstream,
  • 2 per cent points decrease because of decreasing profit margins upstream.

The market for supermarkets has the following market structure:

  • NOKEG AG: 40 per cent market share,
  • UltraBuy AG: 30 per cent market share,
  • Westland Shopping AG: 15 per cent market share.
  • AKEDE AG: 10 per cent market share – small regional supermarket providers: altogether 5 per cent market share.

The supermarket companies perform the following reaction to the upstream price increase:

  • NOKEG increases all its prices by 8 per cent.
  • UltraBuy increases all its prices by 5 per cent.
  • Westland increases its prices by 7.9 per cent but offers a 2-per-cent price discount if consumers buy more than 10 items.
  • AKEDE increases all its prices by 8 per cent but offers a 2-per-cent discount for unemployed people.
  • The small regional suppliers perform various strategies.


Assignment 1 (20 points)

Discuss the pricing strategies of NOKEG, UltraBuy, Westland, and AKEDE. Are they pro- or anticompetitive?

Assignment 2 (5 points)

Westland advertises its price increase by telling the consumers that they raise prices to improve the protection of the environment and to promote regional producers. Thus, Westland consumers can shop with a clear conscience. Is this advertising strategy pro- or anticompetitive?

 Assignment 3 (5 points)

NOKEG successfully lobbies the government to grant their consumers a 5 per cent-discount for their shopping with NOKEG, called “energy payback money” (EPM). This discount is financed by the government. The official reason is to compensate for the energy price-related increase. Is this measure pro- or anticompetitive?

Assignment 4 (20 points)

Discuss the following statement: If a company acquires a monopoly position because of a breakthrough innovation, then the monopoly rents are the deserved reward for its effort.

Essay Helper
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.