Productivity Dynamics and the Role of “Big-Box” Entrants in Retailing

No 898, Working Paper Series from Research Institute of Industrial Economics

Abstract: The entry of large (“big-box”) stores and the accompanying drastic decrease in the overall number of stores represent a striking trend in retail. We use a dynamic model to measure the impact of the entry of large stores on incumbents’ productivity separate from demand while accounting for local markets and the endogeneity of entry. Using data on all retail food stores in Sweden, we find that incumbents’ productivity increases after the entry of large stores and that the magnitude of the increase declines toward the upper part of the productivity distribution. Our findings highlight that large entrants play a crucial role in driving productivity.

Keywords: Retail markets; Imperfect competition; Industry dynamics; Productivity; Dynamic structural model (search for similar items in EconPapers)
JEL-codes: C24 L11 L50 L81 O30 (search for similar items in EconPapers)
Pages: 72 pages
Date: 2012-01-18, Revised 2015-08-31
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
https://www.ifn.se/wfiles/wp/wp898.pdf (application/pdf)

Related works:
Journal Article: Productivity Dynamics and the Role of ‘Big-Box’ Entrants in Retailing (2017)
Working Paper: Productivity Dynamics and the Role of “Big-Box” Entrants in Retailing (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:0898

Access Statistics for this paper

More papers in Working Paper Series from Research Institute of Industrial Economics Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Elisabeth Gustafsson ().