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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. Copyright 2004 Blackwell Publishing, 350 Main Street, Malden, MA 02148, USA, and 9600 Garsington Road, Oxford OX4 2DQ, UK..

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
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    Citations

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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. 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.
    3. 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.
    4. Haltiwanger, John & Jarmin, Ron & Krizan, C.J., 2010. "Mom-and-Pop meet Big-Box: Complements or substitutes?," Journal of Urban Economics, Elsevier, vol. 67(1), pages 116-134, January.
    5. Simon Loertscher & Yves Schneider, 2005. "Switching Costs, Firm Size, and Market Structure," SOI - Working Papers 0508, Socioeconomic Institute - University of Zurich.
    6. 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.
    7. 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.
    8. Murat Genc & Selim Cagatay & Onur A. Koska & Perihan O. Saygin, 2013. "Immigration, Enterprises, and Employment in the European Union," EcoMod2013 5694, EcoMod.
    9. 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.
    10. 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.

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