Competition and Demographics in Large Indian Cities

Mohammad Amin

Journal of Development Studies, 2011, vol. 47, issue 9, 1410-1430

Abstract: Recent studies suggest that consumer-household attributes may be as important in determining the level of competition in certain markets as firm characteristics and the number of firms. However, evidence on which consumer-household attributes matter for competition is limited, especially for developing countries. Focusing on India's retail sector, this article contributes to this literature by showing that the number of adult non-workers per household in the city, a proxy for shopping time opportunity cost, has a strong effect on competition between retailers. Policy implications of our findings in light of the ongoing dramatic reductions in non-workers in India are discussed.

Date: 2011
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DOI: 10.1080/00220388.2010.536224

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