Retail Markups and Discount-Store Entry

IF 0.8 4区经济学 Q3 ECONOMICS

Review of Industrial Organization Pub Date : 2023-10-20 DOI:10.1007/s11151-023-09926-w

Lauren Chenarides, Miguel I. Gómez, Timothy J. Richards, Koichi Yonezawa

引用次数: 1

Abstract

Abstract “Hard discounters” are retail formats that set retail food prices even lower than existing discount formats, such as Walmart and Target. Offering limited assortments and focusing on store-brands, these formats promise to change the competitive landscape of food retailing. In this paper, we study the effect of entry of one hard-discount format on markups earned by existing retail stores, focusing on several important grocery markets across the Eastern U.S. Focusing on establishment-level profitability, we estimate store-level markups using the production-side approach of De Loecker and Warzynski (Am Econ Rev 102(6):2437–2471). We find that hard-discounter entry reduced markups for incumbment retailers by 7.3% relative to markups in non-entry markets. These results indicate that the net effect of hard-discounter entry reduces the overall level of store profitability—despite the somewhat higher sales realized by incumbent retailers.

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零售加价和折扣店进入

“硬折扣店”是指将零售食品价格设定得比沃尔玛和塔吉特等现有折扣形式更低的零售业态。这些模式提供有限的品种，专注于商店品牌，有望改变食品零售业的竞争格局。在本文中，我们研究了一种硬折扣形式的进入对现有零售商店赚取的加成的影响，重点关注美国东部几个重要的杂货市场。关注建立级盈利能力，我们使用De Loecker和Warzynski (Am Econ Rev 102(6): 2437-2471)的生产侧方法估计商店级加成。我们发现，相对于非进入市场，硬折扣进入使现有零售商的利润率降低了7.3%。这些结果表明，硬折扣进入的净效应降低了商店的整体盈利水平——尽管现有零售商实现了更高的销售额。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Review of Industrial Organization Multiple-

CiteScore

2.10

自引率

9.10%

发文量

期刊介绍： New Online Manuscript Submission System The Review of Industrial Organization publishes research papers on all aspects of industrial organization, broadly defined. A main focus is on competition and monopoly, in their many forms and processes and their effects on efficiency, innovation, and social conditions. Topics may range from the internal organization of enterprises to wide international comparisons. The Review is also increasing its interest in papers on public policies such as antitrust, regulation, deregulation, public enterprise, and privatization. Papers may deal with any economic sectors and any developed economies. The Review continues its primary interest in ideas that can be verified by econometric evidence, case studies, or other real conditions. But the Review also seeks papers that advance significant theories of industrial organization and policy. Papers using abstract techniques and econometric tests should present the methods and analysis in plain enough English so that non-specialist readers can evaluate the content. The Review welcomes submissions from any source, and the Editors will make every effort to have papers reviewed quickly and to give prompt decisions. The Editors will also seek to arrange symposia on specific topics, and they are open to proposals for grouped papers. They also welcome shorter notes and commentaries on topics of interest to the profession. Officially cited as: Rev Ind Organ