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Measuring the Impact of Travel Costs on Grocery Shopping

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  • Guillermo Marshall
  • Tiago Pires

Abstract

We build an empirical framework for the analysis of grocery store choice. We find that higher travel costs lead people to shop at places where they pay higher prices and face less variety in economically significant magnitudes. Moreover, store convenience (or travel costs) – rather than prices or variety – is what drives store choice. These results suggest that policies increasing access to supermarkets in areas with a limited supermarket presence are a step in the right direction, in terms of getting people to shop at stores that are more affordable and more likely to offer healthy foods.

Suggested Citation

  • Guillermo Marshall & Tiago Pires, 2018. "Measuring the Impact of Travel Costs on Grocery Shopping," Economic Journal, Royal Economic Society, vol. 128(614), pages 2538-2557, September.
    • Handle: RePEc:wly:econjl:v:128:y:2018:i:614:p:2538-2557
    DOI: 10.1111/ecoj.12523
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    Citations

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    Cited by:

    1. Richard Friberg & Frode Steen & Simen A. Ulsaker, 2022. "Hump-Shaped Cross-Price Effects and the Extensive Margin in Cross-Border Shopping," American Economic Journal: Microeconomics, American Economic Association, vol. 14(2), pages 408-438, May.
    2. Wan Qin & Peng Yuhan & Yu Cuiting & Huang Yu & Liu Danping, 2023. "Optimal Strategies of the Online-to-Offline Instant Delivery Service of Grocery Retailers," SAGE Open, , vol. 13(4), pages 21582440231, December.
    3. Sadahiro, Yukio, 2021. "A method for analyzing the daily variation in the spatial pattern of market area," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    4. Fr d ric Kluser, Tobias Seidel, Maximilian v. Ehrlich, 2022. "Spatial frictions in consumption and retail competition," Diskussionsschriften credresearchpaper40, Universitaet Bern, Departement Volkswirtschaft - CRED.
    5. Bencsik, Panka & Lusher, Lester & Taylor, Rebecca L.C., 2023. "Slow Traffic, Fast Food: The Effects of Time Lost on Food Store Choice," IZA Discussion Papers 16036, Institute of Labor Economics (IZA).
    6. Yanliang Yang & George C Davis & Wen You, 2019. "Measuring Food Expenditure Poverty in SNAP Populations: Some Extensions with an Application to the American Recovery and Reinvestment Act," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(1), pages 133-152, March.
    7. Card. Johnson, Rutherford & Walker II, Eddie G., 2021. "Willingness to Pay for Recreational Land Use in Minnesota," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 9(1), January.
    8. Bencsik, Panka & Lusher, Lester & Taylor, Rebecca, 2021. "Slow Traffic, Fast Food," 2021 Annual Meeting, August 1-3, Austin, Texas 313856, Agricultural and Applied Economics Association.
    9. Stanley Frederick W. T. Lim & Elliot Rabinovich & Sungho Park & Minha Hwang, 2021. "Shopping Activity at Warehouse Club Stores and Its Competitive and Network Density Implications," Production and Operations Management, Production and Operations Management Society, vol. 30(1), pages 28-46, January.
    10. Davis, George C., 2021. "The Implicit Hidden Reductions in the SNAP Benefit Formula: A Unifying Framework for Analysis and Policy Debates," 2021 Annual Meeting, August 1-3, Austin, Texas 313993, Agricultural and Applied Economics Association.
    11. He, Bo & Mirchandani, Prakash & Wang, Yong, 2020. "Removing barriers for grocery stores: O2O platform and self-scheduling delivery capacity," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).

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