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:

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