Store Characteristics in Retail Oligopoly¤
نویسنده
چکیده
This paper assesses the e¢ciency of store characteristics in the supermarket industry using a model of store choice estimated with a consumer survey and a dataset of store characteristics. We measure the private gains to ...rms, and external impacts, of a series of counterfactual changes to store characteristics. The existing stores most pro...table to their ...rms are smaller and reduce consumer distances relative to stores most pro...table to the industry, suggesting that spatial competition internalizes consumer distances. This internalization is incomplete as consumers and ...rms often disagree about the best relocation. Moreover, there are large mutual gains of changing ...rms operating stores, suggesting ine¢cient use of ‡oorspace.
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