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Empirical Analysis of Competition between Wal-Mart and Other Retail Channels

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  • Lesley Chiou

Abstract

"This paper quantifies the degree of competition between Wal-Mart and different retail channels by exploiting a unique dataset that describes a consumer's choice of store. Using a discrete choice model, I estimate a consumer's choice of retailer in the sales market for DVDs among online, mass merchant, electronics, video specialty, and music stores. Wal-Mart competes more intensely with other mass merchants, and conditional on price and distance, the average consumer still prefers Wal-Mart to most other stores. I also consider a counterfactual experiment regarding the entry of Wal-Mart into 15 proposed store sites into California." Copyright (c) 2009, The Author(s) Journal Compilation (c) 2009 Wiley Periodicals, Inc..

Suggested Citation

  • Lesley Chiou, 2009. "Empirical Analysis of Competition between Wal-Mart and Other Retail Channels," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(2), pages 285-322, June.
  • Handle: RePEc:bla:jemstr:v:18:y:2009:i:2:p:285-322
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    Cited by:

    1. Erik Brynjolfsson & Yu (Jeffrey) Hu & Mohammad S. Rahman, 2009. "Battle of the Retail Channels: How Product Selection and Geography Drive Cross-Channel Competition," Management Science, INFORMS, vol. 55(11), pages 1755-1765, November.
    2. Ricard Gil & Frederic Warzynski, 2015. "Vertical Integration, Exclusivity, and Game Sales Performance in the US Video Game Industry," Journal of Law, Economics, and Organization, Oxford University Press, vol. 31(suppl_1), pages 143-168.
    3. Andrea Pozzi, 2012. "Shopping Cost and Brand Exploration in Online Grocery," American Economic Journal: Microeconomics, American Economic Association, vol. 4(3), pages 96-120, August.
    4. Chris Forman, 2013. "How has information technology use shaped the geography of economic activity?," Chapters,in: Handbook of Industry Studies and Economic Geography, chapter 10, pages 253-270 Edward Elgar Publishing.
    5. Michael L. Anderson & David A. Matsa, 2011. "Are Restaurants Really Supersizing America?," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 152-188, January.
    6. Allen Tran, 2014. "The Aggregate Impact Of Online Retail," Working Papers 14-23, Center for Economic Studies, U.S. Census Bureau.
    7. Wu, Chongqi & Mallik, Suman, 2010. "Cross sales in supply chains: An equilibrium analysis," International Journal of Production Economics, Elsevier, vol. 126(2), pages 158-167, August.
    8. Paul L. E. Grieco, 2014. "Discrete games with flexible information structures: an application to local grocery markets," RAND Journal of Economics, RAND Corporation, vol. 45(2), pages 303-340, June.
    9. Eric Overby & Chris Forman, 2011. "The Effect of Electronic Commerce on Geographic Trade and Price Variance in a Business-to-Business Market," Working Papers 11-30, NET Institute.
    10. Glenn Ellison & Sara Fisher Ellison, 2009. "Tax Sensitivity and Home State Preferences in Internet Purchasing," American Economic Journal: Economic Policy, American Economic Association, vol. 1(2), pages 53-71, August.

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