David versus Goliath? The impact of corporate expansion in the alcohol retail industry on incumbent small-scale retailers

Cristina Connolly, Marcello Graziano and Sandro Steinbach

Journal of Wine Economics, 2024, vol. 19, issue 4, 343-355

Abstract: This paper investigates the impact of corporate expansion in the alcohol retail industry on small-scale retailers. Our empirical approach exploits the timing of corporate entries across U.S. states that do not have a state monopoly to examine entry effects based on proximity to incumbent retailers. The analysis, drawing on a comprehensive dataset of U.S. alcohol retailers from 2000 to 2020, reveals that corporate entries within a 1-mile radius positively impact the employment and revenue of nearby small-scale retailers, with these effects intensifying over time and being more pronounced in metropolitan markets. Despite these localized impacts, the overall market structure and firm behavior remain largely unaffected.

Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jwecon:v:19:y:2024:i:4:p:343-355_3

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