Granger causality networks of price leadership in the retail tea market of Argentina

Abstract

Recently, price leadership in supermarkets has become a subject ofextensive research. In our study, we utilize the Generalized Seaton?Waterson(GSW) method, but with a unique approach based on Granger Causality Networks.As it naturally captures statistically significant price variation sequences,the multiple interactions observed by a network present dimensions hardlyobserved when studying pairwise relations. Our investigation centers on retailtea product data from three stores in Argentina. The results highlight numeroussignificant leader-follower relationships, primarily associated with Black teaoptions and brand interactions. We distinguish two main brands in the market assegment leaders. This insight sheds light on the dynamics of price leadershipwithin the retail tea market and provides valuable information for marketparticipants and researchers alike.