The effect of e-commerce on grocery store choice and retail competition

Clara Etcheverry
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Clara Etcheverry: IMT-BS - DEFI - Département Droit, Économie et Finances - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris]

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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 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: 2022-12-31
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Published in Review of Network Economics, 2022, 21 (1), pp.1-28. ⟨10.1515/rne-2023-0017⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04080937

DOI: 10.1515/rne-2023-0017

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