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Supermarkets versus local shopping: Welfare implications of retail provision mode

Author

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  • Rudkin, Simon

Abstract

Presenting a novel model of local shopping, the benefit of monopoly provision due to market size effects is explored. Prices are lower, variety and aggregate consumer surplus higher, than local shopping but many shoppers’ utility falls. Policymakers should take care.

Suggested Citation

  • Rudkin, Simon, 2014. "Supermarkets versus local shopping: Welfare implications of retail provision mode," Economics Letters, Elsevier, vol. 124(3), pages 396-398.
  • Handle: RePEc:eee:ecolet:v:124:y:2014:i:3:p:396-398
    DOI: 10.1016/j.econlet.2014.06.023
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    References listed on IDEAS

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    1. Howard Smith & Donald Hay, 2005. "Streets, Malls, and Supermarkets," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 14(1), pages 29-59, March.
    2. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
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    Cited by:

    1. Cleary, Rebecca & Bonanno, Alessandro & Chenarides, Lauren & Goetz, Stephan J., 2018. "Store profitability and public policies to improve food access in non-metro U.S. counties," Food Policy, Elsevier, vol. 75(C), pages 158-170.
    2. Freire, Tiago & Rudkin, Simon, 2019. "Healthy food diversity and supermarket interventions: Evidence from the Seacroft Intervention Study," Food Policy, Elsevier, vol. 83(C), pages 125-138.

    More about this item

    Keywords

    Market expansion effects; Monopolistic competition; Consumer welfare;

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General

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