This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Hypermarket Competition and the Diffusion of Retail Checkout Barcode Scanning

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Jonathan Beck
Michal Grajek
Christian Wey

Additional information is available for the following registered author(s):

Abstract

This paper presents a set of panel data to study the diffusion of retail checkout barcode scanning in ten European countries over the period 1981-1996. Estimates from a standard diffusion model suggest that countries differ most in the long-run diffusion level of barcode scanning and less in timing or diffusion speed. We present evidence that the emergence of hypermarkets raises competitive intensity and use hypermarket data, among other variables, in a pooled estimation. Results suggest that hypermarket competition reduces longrun adoption of information technology (IT) in retailing. In particular, the emergence of hypermarkets seems to deepen retail segmentation by inducing potential adopters (e.g. supermarkets) to exit the market and/or by discouraging adoption by other retail formats. Consistent with expectations, scale and income effects spur IT diffusion and there is a classic substitution effect: when wages rise, diffusion of a labor-saving technology such as barcode scanning is more intense. We do not find a significant impact of employment protection legislation.

ZUSAMMENFASSUNG - (Wettbewerb durch Hypermärkte und die Diffusion von Scannerkassen im Einzelhandel)
In diesem Papier stellen wir einen Datensatz zur Diffusion des Barcode- Scannens im Einzelhandel in zehn europäischen Ländern zwischen 1981 und 1996 vor. Schätzergebnisse auf Basis eines bewährten Diffusionsmodells ergeben, dass diese Länder sich hauptsächlich im langfristigen Verbreitungsniveau des Barcode-Scannens unterscheiden, und weniger in Diffusionsbeginn und -geschwindigkeit. Wir präsentieren Evidenz dafür, dass die Verbreitung von Hypermärkten die Wettbewerbsintensität im Einzelhandel erhöht und verwenden Daten zu Hypermärkten, zusammen mit anderen Variablen, in einer gemeinsamen Schätzung. Die Ergebnisse legen nahe, dass Wettbewerb durch Hypermärkte sich langfristig negativ auf die Diffusion von Informationstechnologie (IT) im Einzelhandel auswirkt. Insbesondere scheint die Verbreitung von Hypermärkten die Segmentierung im Einzelhandel zu vertiefen, indem sie potentielle Nutzer von IT (z.B. Supermärkte) zum Marktaustritt verleitet und/oder andere Einzelhändler von der Nutzung abschreckt. Wie erwartet stärken Skalen- und Einkommenseffekte die Diffusion von IT, und es gibt einen klassischen Substitutionseffekt: bei steigenden Löhnen ist die Diffusion einer arbeitssparenden Technologie wie dem Barcode-Scannen intensiver. Gesetzgebung zum Kündigungsschutz scheint keine signifikanten Auswirkungen auf IT-Diffusion zu haben.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://skylla.wz-berlin.de/pdf/2005/ii05-19.pdf
File Format: application/pdf
File Function: Full text (original version)
Download Restriction: no

Publisher Info
Paper provided by Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG) in its series CIG Working Papers with number SP II 2005-19.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 33 pages
Date of creation: Nov 2005
Date of revision:
Handle: RePEc:wzb:wzebiv:spii2005-19

Contact details of provider:
Postal: Reichpietschufer 50, 10785 Berlin, Germany
Phone: (++49)(30) 25491-441
Fax: (++49)(30) 25491-442
Web page: http://www.wzb.eu/mp/wiw/default.en.htm
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Jennifer Rontganger).

Related research
Keywords: IT diffusion; retail competition; hypermarkets;

Other versions of this item:

Find related papers by JEL classification:
L5 - Industrial Organization - - Regulation and Industrial Policy
L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Stefano Scarpetta & Philip Hemmings & Thierry Tressel & Jaejoon Woo, 2002. "The Role of Policy and Institutions for Productivity and Firm Dynamics: Evidence from Micro and Industry Data," OECD Economics Department Working Papers 329, OECD, Economics Department. [Downloadable!]
  2. repec:bep:eapadv:v:9:y:2009:i:1:p:2102-2102 is not listed on IDEAS
  3. Geroski, P. A., 2000. "Models of technology diffusion," Research Policy, Elsevier, vol. 29(4-5), pages 603-625, April. [Downloadable!] (restricted)
    Other versions:
  4. James G. Mulligan & Nilotpal Das, 2004. "Vintage Effects and the Diffusion of Time-Saving Technological Innovations: The Adoption of Optical Scanners by U.S. Supermarkets."," Working Papers 04-06, University of Delaware, Department of Economics. [Downloadable!]
  5. Howard Smith & Donald Hay, 2005. "Streets, Malls, and Supermarkets," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 14(1), pages 29-59, 03. [Downloadable!] (restricted)
  6. Leonard I. Nakamura, 1999. "The measurement of retail output and the retail revolution," Canadian Journal of Economics, Canadian Economics Association, vol. 32(2), pages 408-425, April. [Downloadable!] (restricted)
  7. Swan, Peter L, 1970. "Market Structure and Technological Progress: The Influence of Monopoly on Product Innovation," The Quarterly Journal of Economics, MIT Press, vol. 84(4), pages 627-38, November. [Downloadable!] (restricted)
  8. Gruber, Harald & Verboven, Frank, 2001. "The diffusion of mobile telecommunications services in the European Union," European Economic Review, Elsevier, vol. 45(3), pages 577-588, March. [Downloadable!] (restricted)
    Other versions:
  9. Justus Haucap & Christian Wey, 2004. "Unionisation structures and innovation incentives," Economic Journal, Royal Economic Society, vol. 114(494), pages C149-C165, 03. [Downloadable!] (restricted)
    Other versions:
  10. Timmer, Marcel & Inklaar , Robert, 2005. "Productivity differentials in the U.S. and EU distributive trade sector: statistical myth or reality," GGDC Research Memorandum 200576, Groningen Growth and Development Centre, University of Groningen. [Downloadable!]
    Other versions:
  11. Bronwyn Hall & Beethika Khan, 2003. "Adoption of New Technology," Department of Economics, Working Paper Series 1055, Department of Economics, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]
    Other versions:
  12. BOUCEKKINE, Raouf & LICANDRO, Omar & MINNITI, Antonio, 2004. "Adoption and diffusion of cost reducing innovations: Cournot competition in duopoly," CORE Discussion Papers 2004085, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
    Other versions:
  13. Blanchard, Olivier & Wolfers, Justin, 2000. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," Economic Journal, Royal Economic Society, vol. 110(462), pages C1-33, March. [Downloadable!] (restricted)
    Other versions:
  14. C.J. Krizan & John Haltiwanger & Lucia Foster, 2002. "The Link Between Aggregate and Micro Productivity Growth: Evidence from Retail Trade," Working Papers 02-18, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
    Other versions:
  15. A. Michael Spence, 1975. "Monopoly, Quality, and Regulation," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 417-429, Autumn. [Downloadable!] (restricted)
  16. Levin, Sharon G & Levin, Stanford L & Meisel, John B, 1987. "A Dynamic Analysis of the Adoption of a New Technology: The Case of Optical Scanners," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 12-17, February. [Downloadable!] (restricted)
  17. Gust, Christopher & Marquez, Jaime, 2004. "International comparisons of productivity growth: the role of information technology and regulatory practices," Labour Economics, Elsevier, vol. 11(1), pages 33-58, February. [Downloadable!] (restricted)
  18. Marianne Bertrand & Francis Kramarz, 2001. "Does Entry Regulation Hinder Job Creation? Evidence from the French Retail Industry," NBER Working Papers 8211, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  19. Andrea Bassanini & Ekkehard Ernst, 2002. "Labour Market Institutions, Product Market Regulation, and Innovation: Cross-Country Evidence," OECD Economics Department Working Papers 316, OECD, Economics Department. [Downloadable!]
  20. Holmes, Thomas J, 2001. "Bar Codes Lead to Frequent Deliveries and Superstores," RAND Journal of Economics, The RAND Corporation, vol. 32(4), pages 708-25, Winter.
    Other versions:
  21. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: An Inverted-U Relationship," The Quarterly Journal of Economics, MIT Press, vol. 120(2), pages 701-728, May.
    Other versions:
  22. Georg Götz, 1999. "Monopolistic Competition and the Diffusion of New Technology," RAND Journal of Economics, The RAND Corporation, vol. 30(4), pages 679-693, Winter. [Downloadable!] (restricted)
    Other versions:
  23. Koeniger, Winfried, 2005. "Dismissal costs and innovation," Economics Letters, Elsevier, vol. 88(1), pages 79-84, July. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Michal Grajek & Tobias Kretschmer, 2006. "Usage and Diffusion of Cellular Telephony, 1998-2004," CIG Working Papers SP II 2006-20, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
    Other versions:
Statistics
Access and download statistics

Did you know? RePEc stands for Research Papers in Economics.

This page was last updated on 2009-11-19.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.