Entry of Wal-Mart Supercenters and Supermarkets’ Profit Margins Reportar como inadecuado

Entry of Wal-Mart Supercenters and Supermarkets’ Profit Margins - Descarga este documento en PDF. Documentación en PDF para descargar gratis. Disponible también para leer online.

This article quantifies the impact of Wal-Mart Supercenters on supermarkets’ profitability via a two-stage dynamic entry game, using method of simulated moments and milk scanner data from Dallas/Fort Worth supermarkets. The empirical findings show that the entry of Wal-Mart Supercenters accounts for about an average 50% decrease in milk profit margins for incumbent supermarkets. Effects of scale are found to be more significant for Wal-Mart Supercenters than for incumbent supermarkets, granting Wal-Mart a competitive edge.

Keywords: Wal-Mart ; entry ; profit margins ; milk ; dynamic games

Subject(s): Community/Rural/Urban Development

Issue Date: 2011-06

Publication Type: Working or Discussion Paper

PURL Identifier: http://purl.umn.edu/148291

Total Pages: 29

JEL Codes: L1; L66; L81; D4; C73

Series Statement: Working Papers


Record appears in: University of Connecticut > Charles J. Zwick Center for Food and Resource Policy > Working Paper series

Autor: Liu, Xiaoou ; Lopez, Rigoberto

Fuente: http://ageconsearch.umn.edu/record/148291?ln=en

Documentos relacionados