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Welfare Assessment of Entry of New Retail Formats and Deregulation for Restriction on Large Retail Scale Stores in Japan

Author

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  • Keiichiro HONDA
  • Toshiyuki MATSUURA
  • Takeshi MIZUTA

Abstract

This study attempts to measure the welfare gain caused by new retailer entries and the deregulation of entry restriction. In 1990s and 2000s, the retail sector in Japan experienced significant reallocation dynamics. Two retail formats have expanded their market share: one is specialty supermarket stores that expanded their market shares partially due to the deregulation of large-scale stores, and the other is convenience stores that take advantage of their distinctive service quality and efficient operation system. We estimate the consumer benefit by incorporating the differences in service quality as well as differences in price among retail formats and demonstrate that welfare improvements are primarily explained by changes in price and service quality. JEL Classification Code：L13, L81, L51 Keywords：Competition, Welfare Analysis, Retail Industry, Entry Regulation

Suggested Citation

  • Keiichiro HONDA & Toshiyuki MATSUURA & Takeshi MIZUTA, 2017. "Welfare Assessment of Entry of New Retail Formats and Deregulation for Restriction on Large Retail Scale Stores in Japan," Economic Analysis, Economic and Social Research Institute (ESRI), vol. 194, pages 45-64, May.
    • Handle: RePEc:esj:esriea:194c
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    References listed on IDEAS

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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
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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