Bibliographic Details
| Title: |
Entry and Prices: Evidence from the Supermarket Sector. |
| Authors: |
Lira, Loreto1 llira@uandes.cl, Rivero, Rosario2 mrivero@puc.cl, Vergara, Rodrigo2 rvergara@faceapuc.cl |
| Source: |
Review of Industrial Organization. Dec2007, Vol. 31 Issue 4, p237-260. 24p. 10 Charts, 2 Graphs. |
| Subjects: |
Prices, Supermarkets, Business enterprises, Hypermarkets, Consumer price indexes, Macroeconomics, Price inflation, Market share |
| Geographic Terms: |
Chile |
| Abstract: |
The purpose of this paper is to investigate the effect on prices of the entry of a large supermarket into a given location. We use a panel with data from fifteen cities in Chile for the period 1998:I–2004:IV. We correct for the potential simultaneity problem derived from the fact that entry can be a response to price differentials. We find that the entry of a hypermarket to a given city reduces relative prices in that local market by 7–11%. Most interestingly, we also find that part of this effect takes place the year before the supermarket actually opens for business. [ABSTRACT FROM AUTHOR] |
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| Database: |
Engineering Source |
