Consumer Benefits from Increased Competition in Shopping Outlets: Measuring the Effect of Wal-Mart

Jerry Hausman and Ephraim Leibtag

No 11809, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Consumers often benefit from increased competition in differentiated product settings. In this paper we consider consumer benefits from increased competition in a differentiated product setting: the spread of non-traditional retail outlets. In this paper we estimate consumer benefits from supercenter entry and expansion into markets for food. We estimate a discrete choice model for household shopping choice of supercenters and traditional outlets for food. We have panel data for households so we can follow their shopping patterns over time and allow for a fixed effect in their shopping behavior. We find the benefits to be substantial, both in terms of food expenditure and in terms of overall consumer expenditure. Low income households benefit the most.

JEL-codes: D1 D3 D4 D6 (search for similar items in EconPapers)
Date: 2005-12
New Economics Papers: this item is included in nep-com, nep-dcm, nep-mic and nep-mkt
Note: EFG PR
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Citations: View citations in EconPapers (39)

Published as Hausman, Jerry, Ephraim Leibtag. "Consumer Benefits from Increased Competition in Shopping Outlets: Measuring the Effect of Wal-Mart." Journal of Applied Econometrics 22, 7 (December 2007): 1157-77.

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Journal Article: Consumer benefits from increased competition in shopping outlets: Measuring the effect of Wal-Mart (2007)
Working Paper: Consumer Benefits from Increased Competition in Shopping Outlets: Measuring the Effect of Wal-Mart (2006)
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