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Do supermarkets reduce the number of traditional bookshops? An empirical application to the textbook market in Spain

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  • Aday Hernandez

    ()

  • Juan Luis Jimenez

    ()
    (University of Las Palmas de Gran Canaria. Facultad de Economía, Empresa y Turismo)

Abstract

Some countries, especially in Europe, regulate the textbook market due to its special characteristics. In 2000, the Spanish Government passed a law that relaxes resale price maintenance and lets retailers give discounts of up to 25% off the gross price. Traditional bookshops do not favour this policy. We construct a database for the Canary Islands (a Spanish Autonomous Community) on schools, bookshops, population and other control factors. Our empirical objectives are twofold: first, we explore whether malls force the exit (or encourage entry) of bookshops; second, we test whether these larger retailers decrease consumer welfare by increasing distance from schools to points of sale. The results show that malls are not as bad as bookshops claim

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File URL: http://www.culturaleconomics.org/awp/AWP-02-2011.pdf
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Bibliographic Info

Paper provided by the Association for Cultural Economics International in its series ACEI Working Paper Series with number AWP-02-2011.

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Length: 13 pages
Date of creation: Jul 2011
Date of revision: Jul 2011
Handle: RePEc:cue:wpaper:awp-02-2011

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Keywords: Textbooks; Competition; Regional economic activity;

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  1. Siegfried, John J. & Latta, Christopher, 1998. "Competition in the Retail College Textbook Market," Economics of Education Review, Elsevier, vol. 17(1), pages 105-115, February.
  2. Neil Wrigley & Julia Branson & Andrew Murdock & Graham Clarke, 2009. "Extending the Competition Commission’s findings on entry and exit of small stores in British high streets: implications for competition and planning policy," Environment and Planning A, Pion Ltd, London, vol. 41(9), pages 2063-2085, September.
  3. Juan Jiménez & Javier Campos, 2010. "Modelling Competition in the Textbook Market: Some Lessons still to Learn," Journal of Industry, Competition and Trade, Springer, vol. 10(1), pages 71-85, March.
  4. Vidar Ringstad & Knut Løyland, 2006. "The Demand for Books Estimated by Means of Consumer Survey Data," Journal of Cultural Economics, Springer, vol. 30(2), pages 141-155, September.
  5. Françoise Benhamou & Stéphanie Peltier, 2007. "How should cultural diversity be measured? An application using the French publishing industry," Journal of Cultural Economics, Springer, vol. 31(2), pages 85-107, June.
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