Selling a Cheaper Mousetrap: Entry and Competition in the Retail Sector

Topics:
Grocery,
Home Furnishings and Housewares
Tags:
Entry,
Retail Price,
University Of Missouri,
Wal-Mart Stores Inc.
Source:
University of Missouri

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Overview: This paper quantifies the price effect of a low-cost entrant on retail prices using a case-study approach. It considers the effect of Wal-Mart entry on average city-level prices of various consumer goods by exploiting variation in the timing of store entry. The analysis combines two unique data sets, one containing opening dates of all US Wal-Mart stores and the other containing average quarterly retail prices of several narrowly defined commonly purchased goods over the period 1982-2002.

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Format: PDF | Size: 615KB | Date: Nov 2004 | Pages: 29

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