Evaluating food retailers using dual elasticities of substitution

Timothy Park and Johannes Sauer ()

Journal of Productivity Analysis, 2013, vol. 39, issue 2, 122 pages

Abstract: Dual elasticities of substitution from a distance function model of the food retailing establishment are developed based on multiple performance measures integrated with store characteristics, staffing decisions, and employee benefits and incentives. The impacts of organizational and competitive conditions such as store format, membership in a self-distributing chain, and the presence of a supercenter on store management decisions are evaluated. Technical substitution relationships implied by the dual Morishima elasticities confirm that moderate changes in relative shadow factor prices are associated with input adjustments in retail operations, implying that the costs of adjusting input allocations are small. Both value added and service offerings decline in the presence of a supercenter, with food retailers relying on price adjustments as a primary strategy. Copyright Springer Science+Business Media, LLC (outside the USA) 2013

Keywords: Food retailing; Dual Morishima elasticity of substitution; Input distance function; L25; L81; J24 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1007/s11123-012-0279-x (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jproda:v:39:y:2013:i:2:p:111-122

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11123/PS2

DOI: 10.1007/s11123-012-0279-x

Access Statistics for this article

Journal of Productivity Analysis is currently edited by William Greene, Chris O'Donnell and Victor Podinovski

More articles in Journal of Productivity Analysis from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().