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Lack of Uniform Prices or Lack of Uniform Retailers?

Author

Listed:
  • Seula Kim
  • Michael A. Navarrete

Abstract

Standard models assume uniform pricing across stores (DellaVigna and Gentzkow 2019). We show that uniform pricing varies across products within food categories. Even when product-chain prices are nearly uniform, cross-market differences in retailer and product composition generate spatial dispersion in effective price levels. Poorer metropolitan statistical areas are served by fewer chains, have a higher share of large national retailers, and exhibit lower product variety across and within retailers. Ignoring this heterogeneity understates price-level gaps between poor and rich areas. These results complement Kim and Navarrete (2025), who identify retail market structure as a key driver of spatial inflation heterogeneity.

Suggested Citation

  • Seula Kim & Michael A. Navarrete, 2026. "Lack of Uniform Prices or Lack of Uniform Retailers?," AEA Papers and Proceedings, American Economic Association, vol. 116, pages 568-572, May.
    • Handle: RePEc:aea:apandp:v:116:y:2026:p:568-572
    DOI: 10.1257/pandp.20261063
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    More about this item

    JEL classification:

    • 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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