The entry of a hard discount supermarket: price effects

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Main Author: Andrés Gómez-Lobo
Format: Artículo científico
Language:en
Published: Asociación Española de Ciencia Regional 2015
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author Andrés Gómez-Lobo
author_facet Andrés Gómez-Lobo
contents The entry of a hard discount supermarket: price effects Andrés Gómez-Lobo Juan Luis Jiménez Jordi Perdiguero Estudios Territoriales Entry Prices Retailing Product Variety In this paper we study how an incumbent supermarket reacts when entry by a new operator is announced but does not know the product variety that the entrant will offer. We use a database obtained from a special survey for supermarkets in Gran Canaria to estimate how incumbents reacted to entry in the products sold and not sold by the new entrant (LIDL). We show that there is evidence that prices for all goods prior to entry were initially lower in supermarkets close to the future entrant compared to supermarkets further away. However, after entry incumbents’ prices for products not sold by the entrant actually rose near the entrant’s new stores, compared to a suitable control group of supermarkets farther away. JEL Classification: L2; L15; L81. 2015 artículo científico 1695-7253 https://www.redalyc.org/articulo.oa?id=28937737005 en http://www.redalyc.org/revista.oa?id=289 Investigaciones Regionales - Journal of Regional Research application/pdf Asociación Española de Ciencia Regional Investigaciones Regionales - Journal of Regional Research (España) Num.31
format Artículo científico
id redalyc_28937737005
institution Redalyc
language en
publishDate 2015
publisher Asociación Española de Ciencia Regional
spellingShingle The entry of a hard discount supermarket: price effects
Andrés Gómez-Lobo
Estudios Territoriales
Entry
Prices
Retailing
Product Variety
The entry of a hard discount supermarket: price effects Andrés Gómez-Lobo Juan Luis Jiménez Jordi Perdiguero Estudios Territoriales Entry Prices Retailing Product Variety In this paper we study how an incumbent supermarket reacts when entry by a new operator is announced but does not know the product variety that the entrant will offer. We use a database obtained from a special survey for supermarkets in Gran Canaria to estimate how incumbents reacted to entry in the products sold and not sold by the new entrant (LIDL). We show that there is evidence that prices for all goods prior to entry were initially lower in supermarkets close to the future entrant compared to supermarkets further away. However, after entry incumbents’ prices for products not sold by the entrant actually rose near the entrant’s new stores, compared to a suitable control group of supermarkets farther away. JEL Classification: L2; L15; L81. 2015 artículo científico 1695-7253 https://www.redalyc.org/articulo.oa?id=28937737005 en http://www.redalyc.org/revista.oa?id=289 Investigaciones Regionales - Journal of Regional Research application/pdf Asociación Española de Ciencia Regional Investigaciones Regionales - Journal of Regional Research (España) Num.31
title The entry of a hard discount supermarket: price effects
topic Estudios Territoriales
Entry
Prices
Retailing
Product Variety
url https://www.redalyc.org/articulo.oa?id=28937737005