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Determinantes de la entrada de supermercados en México/Determinants of supermarket entry in Mexico

Author

Listed:
  • Alejandro Castañeda

    (El Colegio de México)

  • Pedro Ibarra

    (El Colegio de México)

Abstract

We estimate reduced form models, the profits are function of observable variables, to analyze the determinants of supermarket entry. We find that more concentrated markets, constructed on chain information, diminish the incentives to enter a market. Additionally, by controlling for market concentration and by analyzing the specific impact of brand chain, we find that a larger number of Walmart stores increase the feasibility of zero and one store in the relevant market and diminishes the feasibility of two or more stores in the market. For the other chains we find an opposite result.

Suggested Citation

  • Alejandro Castañeda & Pedro Ibarra, 2019. "Determinantes de la entrada de supermercados en México/Determinants of supermarket entry in Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 34(1), pages 61-90.
    • Handle: RePEc:emx:esteco:v:34:y:2019:i:1:p:61-90
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    File URL: https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/364/403
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    More about this item

    Keywords

    supermarkets; market entry; relevant market; supermarket chains; concentration;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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