The Effect of E-Commerce on Grocery Store Choice and Retail Competition

Etcheverry Clara ()
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Etcheverry Clara: Institut Mines-Télécom Business School, 9 rue Charles Fourier, 91000 Evry, France

Review of Network Economics, 2022, vol. 21, issue 1, 1-28

Abstract: E-commerce continues its expansion, and most retail groups have opened online distribution channels in the French grocery market. Using purchasing data, I develop a store choice model and a supply model to estimate the effect of the online distribution channel on consumer welfare and retail competition. E-commerce leads to a small decrease in consumer surplus. Furthermore, only online leaders obtain more market shares and profits while the majority of retailers globally get lower market shares and profits with e-commerce.

Keywords: counterfactual; e-commerce; grocery; online shopping; store choice (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1515/rne-2023-0017

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