The Effect of Wal-Mart Supercenters on Grocery Prices in New England
AbstractThe competitive price effect of Wal-Mart Supercenters on national brand and private label grocery prices in New England is examined. We use primary price data collected on several identical products from six Supercenters in Massachusetts, Connecticut, and Rhode Island and from conventional supermarkets. Taking into account demographics, store characteristics, and market conditions, we show that Wal-Mart decreases prices by 6 to 7% for national brand goods and by 3 to 8% for private label goods. Price decreases are most significant in the dry grocery and dairy departments. Moreover, Wal-Mart sets grocery prices significantly lower than its competitors. Copyright 2008, Oxford University Press.
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Bibliographic InfoArticle provided by Agricultural and Applied Economics Association in its journal Review of Agricultural Economics.
Volume (Year): 30 (2008)
Issue (Month): 1 ()
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- Richard J. Volpe III & Nathalie Lavoie, 2006. "The Effect of Wal-Mart Supercenters on Grocery Prices in New England," Working Papers 2006-8, University of Massachusetts Amherst, Department of Resource Economics.
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
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