Hump-shaped cross-price effects and the extensive margin in cross-border shopping

Richard Friberg, Frode Steen and Simen Ulsaker

No 29/2018, Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics

Abstract: This paper examines the effect of cross-border shopping on grocery demand in Norway using monthly store×category sales data from Norway’s largest grocery chain 2011-2016. The sensitivity of demand to foreign price is hump-shaped and greatest 30-60 minutes’ driving distance from the closest foreign store. Combining continuous demand, fixed costs of cross-border shopping and linear transport costs `a la Hotelling we show how this hump-shape can arise through a combination of intensive and extensive margins of cross-border shopping. Our conclusions are further supported by novel survey evidence and cross-border traffic data.

Keywords: Cross-border shopping; competition in grocery markets; product differentiation (search for similar items in EconPapers)
JEL-codes: F15 H73 L66 R20 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2018-12-17
New Economics Papers: this item is included in nep-com, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://brage.bibsys.no/xmlui/handle/11250/2578608 Full text (application/pdf)

Related works:
Journal Article: Hump-Shaped Cross-Price Effects and the Extensive Margin in Cross-Border Shopping (2022)
Working Paper: Hump-shaped cross-price effects and the extensive margin in cross-border shopping (2019)
Working Paper: Hump-shaped cross-price effects and the extensive margin in cross-border shopping (2019)
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:hhs:nhheco:2018_029

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Synne Stormoen ().