This paper presents empirical evidence that endogenous fixed costs play a central role in determining the equilibrium structure of the retail food industry. Using the framework developed in Sutton [Sutton, J. (1991). Sunk Cost and Market Structure: Price Competition, Advertising, and the Evolution of Concentration (MIT Press, Cambridge).], I construct a structural model of retail competition in...

With the introduction of the Euro, a single European money market has emerged. Further wholesale financial markets are considered to be highly integrated within the European Union. However, integration in retail financial markets is less advanced. For measuring financial market integration this distinction between wholesale and retail markets becomes crucial. There is a wide literature relating...

Mobile Customer Relationship Management (mCRM) system is one of the recent advancements in CRM systems. Recent years, customers using mobile phone have presented a very fast growing on value added services, SMS and information services. Advances in technology have changed the way in which the retail sector conducts business and are increasingly providing customer with greater conveniences. The ...

Motivated by the need to understand the underlying antecedents of RFID adoption in retail, this study proposes and tests a framework predicting RFID adoption intent. Based on the TOE (technology-organizationenvironment) framework, this research develops and validates the research framework to examine the influence of twelve contextual factors under four broad categories (technological, organiza...

In this paper, we propose a structural model of channel choice and product purchases, in which consumers base their channel choice decision on both the utility inherent in visiting a channel and the expected utility from purchasing products upon visiting. Specifically, we allow channels to have different abilities to resolve consumer uncertainty about product fit that varies by product category...

We develop a reduced-form model of price transmission in a vertical sector, allowing for refined asymmetric, contemporaneous and lagged, own and cross price effects under time-varying volatility. The model is used to investigate wholesale-retail price dynamics in the US butter market. The analysis documents the nature of nonlinear price dynamics in a vertical sector, with implications for price...

We provide a simple behavioral explanation of why manufacturers frequently announce non-binding suggested retail prices for their products. Our model is based on the assumption that once the actual price for a product exceeds its suggested retail price, the marginal propensity to consume suddenly jumps downward. We show that this may induce a monopolistic retailer to set the price equal to the ...

We employ a stylized model of the electricity industry to examine the effects of restructuring on capacity investments, retail prices and welfare, allowing for uncertain demand. We consider the following market configurations: (i) integrated monopoly, (ii) integrated duopoly with wholesale trade, and (iii) separated duopoly with wholesale trade. We find that generators install sufficient capaci...

In order to categorize the global diffusion of supermarkets, the metaphor of waves is often used. This is a simplification, however, which obscures the fact that developments in the countries experiencing these waves of innovation are much more nuanced. This case study on the development of the Turkish grocery retail sector since the 1950s, shows how this development can be divided into differe...

This work-in-progress paper empirically investigates the consumer perception of Radio Frequency Identification (RFID) and 3-D body scanning for mass deployment in apparel retail. Consumer response towards the benefits and issues (privacy and price) of both technologies were evaluated based on Rogers’ Theory of Innovation Diffusion. Demographic and behavioral segmentation based on the responses ...