Spatial competition in the French supermarket industry

Stéphane Turolla

No 207984, Working Papers from Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2)

Abstract: This paper challenges the conventional wisdom on the competitive grocery retail sector in France. To that end, I develop a structural model of spatial competition that accounts for (i) market geography on consumers' preferences, and (ii) differences in their shopping list. The demand estimates are used to recover stores' price-cost margin under alternative pricing strategies. I select the best pricing model by applying non-nested tests and show that retailers noticeably distort their offer in highly concentrated markets. Finally, I perform counterfactual experiments to quantify the expected gain of an additional store on consumer welfare and retail prices.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 45
Date: 2012
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Citations: View citations in EconPapers (4)

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https://ageconsearch.umn.edu/record/207984/files/WP%20SMART-LERECO%2012-01.pdf (application/pdf)

Related works:
Journal Article: Spatial Competition in the French Supermarket Industry (2016)
Working Paper: Spatial competition in the French supermarket industry (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:inrasl:207984

DOI: 10.22004/ag.econ.207984

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