Do supermarkets reduce the number of traditional bookshops? An empirical application to the textbook market in Spain

Aday Hernández () and Juan Jiménez González

No AWP-02-2011, ACEI Working Paper Series from Association for Cultural Economics International

Abstract: Some countries, especially in Europe, regulate the textbook market due to its special characteristics. In 2000, the Spanish Government passed a law that relaxes resale price maintenance and lets retailers give discounts of up to 25% off the gross price. Traditional bookshops do not favour this policy. We construct a database for the Canary Islands (a Spanish Autonomous Community) on schools, bookshops, population and other control factors. Our empirical objectives are twofold: first, we explore whether malls force the exit (or encourage entry) of bookshops; second, we test whether these larger retailers decrease consumer welfare by increasing distance from schools to points of sale. The results show that malls are not as bad as bookshops claim

Keywords: Textbooks; Competition; Regional economic activity (search for similar items in EconPapers)
JEL-codes: R11 Z11 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2011-07, Revised 2011-07
New Economics Papers: this item is included in nep-com, nep-eur, nep-geo, nep-hme and nep-mkt
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Persistent link: https://EconPapers.repec.org/RePEc:cue:wpaper:awp-02-2011

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