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Change at the Checkout: Tracing the Impact of a Process Innovation

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Abstract

Barcode scanners, introduced in the early 1970s, were a foundational process innovation in the grocery supply chain. By 1984 scanners had been installed in 10% of food stores in the U.S. Difference-in-difference analysis of city-level price data shows that scanners reduced prices of groceries by about 1.4% in their first decade. The results are consistent with prior estimates of labor saving by scanners and better information available to stores. Early adopters and adopters in states that imposed fewer restrictions on complementary process innovations contributed disproportionately to the price decreases.

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Bibliographic Info

Paper provided by Department of Economics, University of Missouri in its series Working Papers with number 1302.

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Length: 42 pgs.
Date of creation: 06 Feb 2013
Date of revision:
Handle: RePEc:umc:wpaper:1302

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Keywords: baretail; supermarkets; prices; technology; Process Innovation; barcode scanners;

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References

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Cited by:
  1. Levy, Daniel, 2013. "Discussion of "Change at the Checkout: Tracing the Impact of a Process Innovation" by Emek Basker," MPRA Paper 52605, University Library of Munich, Germany.

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