French supermarkets drive up prices through persistent pricing disparities.
The study looked at grocery prices in French supermarkets and found that the difference between high and low prices for the same product is mainly due to consistent pricing strategies by different stores, rather than temporary sales or promotions. Prices vary more between stores than over time, with some stores consistently charging more or less than others. This shows that price differences are mostly due to how each store chooses to set their prices, rather than external factors like competition or demand.