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Firm Organization and the Structure of Retail Markets

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  • Emin M. Dinlersoz

Abstract

This paper analyzes the structure of retail markets by highlighting the differential pattern exhibited across local markets by two different types of firm organization: chain stores versus stand‐alone stores. Data from retail alcoholic beverage industry in California suggest that the number of chain stores is proportional to city size. Further evidence on the sales of establishments indicates that average size of a stand‐alone store virtually is invariant to city size, whereas chain stores appear to get larger as city size increases. Theories consistent with these findings are discussed.

Suggested Citation

  • Emin M. Dinlersoz, 2004. "Firm Organization and the Structure of Retail Markets," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(2), pages 207-240, June.
    • Handle: RePEc:bla:jemstr:v:13:y:2004:i:2:p:207-240
    DOI: 10.1111/j.1530-9134.2004.00009.x
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    References listed on IDEAS

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    Cited by:

    1. Ronald S. Jarmin & Shawn D. Klimek & Javier Miranda, 2009. "The Role of Retail Chains: National, Regional and Industry Results," NBER Chapters, in: Producer Dynamics: New Evidence from Micro Data, pages 237-262, National Bureau of Economic Research, Inc.
    2. Emin Dinlersoz & Yueyuan Ma, 2026. "Expectations versus Reality in Business Formation," Working Papers 26-11, Center for Economic Studies, U.S. Census Bureau.
    3. Chongyu Wang & Tingyu Zhou, 2023. "Face‐to‐face interactions, tenant resilience, and commercial real estate performance," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(6), pages 1467-1511, November.
    4. Basker, Emek, 2005. "Selling a cheaper mousetrap: Wal-Mart's effect on retail prices," Journal of Urban Economics, Elsevier, vol. 58(2), pages 203-229, September.
    5. Rachel Meltzer & Sean Capperis, 2017. "Neighbourhood differences in retail turnover: Evidence from New York City," Urban Studies, Urban Studies Journal Limited, vol. 54(13), pages 3022-3057, October.
    6. Simon Loertscher & Yves Schneider, 2005. "Switching Costs, Firm Size, and Market Structure," Diskussionsschriften dp0515, Universitaet Bern, Departement Volkswirtschaft.
    7. John Haltiwanger & Ron Jarmin & C. J. Krizan, 2010. "Mom-and-Pop Meet Big-Box: Complements or Substitutes?," NBER Chapters, in: Cities and Entrepreneurship, National Bureau of Economic Research, Inc.
    8. Minjee Kim & Tingyu Zhou, 2021. "Does Restricting the Entry of Formula Businesses Help Mom-and-Pop Stores? The Case of Small American Towns With Unique Community Character," Economic Development Quarterly, , vol. 35(2), pages 157-173, May.
    9. Meltzer, Rachel & Ellen, Ingrid Gould & Li, Xiaodi, 2021. "Localized commercial effects from natural disasters: The case of Hurricane Sandy and New York City," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    10. Downes, Tom & Greenstein, Shane, 2007. "Understanding why universal service obligations may be unnecessary: The private development of local Internet access markets," Journal of Urban Economics, Elsevier, vol. 62(1), pages 2-26, July.
    11. Matthew Olczak, 2015. "Chain-Store Pricing and the Structure of Retail Markets," Journal of Industry, Competition and Trade, Springer, vol. 15(2), pages 87-104, June.
    12. Schuetz, Jenny & Kolko, Jed & Meltzer, Rachel, 2012. "Are poor neighborhoods “retail deserts”?," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 269-285.
    13. Andrew Eckert & Douglas West, 2008. "Firm Survival and Chain Growth in a Privatized Retail Liquor Store Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 32(1), pages 1-18, February.
    14. Murat Genc & Selim Cagatay & Onur A. Koska & Perihan O. Saygin, 2013. "Immigration, Enterprises, and Employment in the European Union," EcoMod2013 5694, EcoMod.
    15. Jenny Schuetz & Jed Kolko & Rachel Meltzer, 2010. "Is the 'Shop Around the Corner' a Luxury or a Nuisance? The relationship between income and neighborhood retail patterns," Working Paper 8513, USC Lusk Center for Real Estate.

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