Price Dispersion and Accessibility: A Case Study of Fast Food

Hayden Stewart () and David E. Davis ()
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Hayden Stewart: Economic Research Service, U.S. Department of Agriculture

Southern Economic Journal, 2005, vol. 71, issue 4, pages 784-799

Abstract: This study examines spatial variation in the price and accessibility of fast food across a major urban area. We use novel data on the price of a representative fast-food meal and the location of fast-food restaurants belonging to one of three major chains in the District of Columbia and its surrounding suburbs. These data are used to test a structural model of spatial competition. The results of this study are easily interpreted and compared with a past analysis. We find that spatial differences in costs and demand conditions drive variation in the number of firms operating in a market, which in turn affects prices.

JEL-codes: L11 L81 D43 (search for similar items in EconPapers)
Date: 2005
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Working Paper: Price Dispersion and Accessibility: A Case study of Fast Food (2005)
Working Paper: Price Dispersion and Accessibility: A Case study of Fast Food (2005)
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Persistent link: http://EconPapers.repec.org/RePEc:sej:ancoec:v:71:4:y:2005:p:784-799

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