The entry of a hard discount supermarket: price effects
Date
2015Bibliographic citation
Investigaciones regionales = Journal of Regional Research, 2015, n.31, p. 143-154
Keywords
Entry
Product variety
Prices
Retailing
Entrada
Variedad de productos
Precios
Minoristas
Document type
info:eu-repo/semantics/article
Version
info:eu-repo/semantics/publishedVersion
Access rights
info:eu-repo/semantics/openAccess
Abstract
In this paper we study how an incumbent supermarket reacts when
entry by a new operator is announced but does not know the product variety that the entrant will offer. We use a database obtained from a special survey for supermarkets in Gran Canaria to estimate how incumbents reacted to entry in the products sold and not sold by the new entrant (LIDL). We show that there is evidence that prices for all goods prior to entry were initially lower in supermarkets close to the future entrant compared to supermarkets further away. However, after entry incumbents' prices for products not sold by the entrant actually rose near the entrant's new stores, compared to a suitable control group of supermarkets farther away. En este trabajo analizamos cómo reacciona un incumbente ante la
entrada de un nuevo operador del que desconoce la variedad de productos que éste ofrecerá. Para ello utilizamos una base de datos proveniente de un trabajo de campo propio de supermercados en Gran Canaria en orden a estimar dicha reacción en términos de precios, tanto para productos vendidos como no vendidos por el
entrante (LIDL). Nuestros resultados apuntan a una bajada generalizada de precios antes de la entrada por parte de los incumbentes afectados por dicha entrada. Sin embargo, dichos supermercados afectados aumentaron los precios de aquellos productos que finalmente no fueron vendidos por el entrante.
Files in this item
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entry_gómez_2015_N31.pdf | 427.5Kb |
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Files | Size | Format |
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entry_gómez_2015_N31.pdf | 427.5Kb |
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