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Modern Food Retailers and Traditional Markets in Developing Countries: Comparing Quality, Prices, and Competition Strategies in Thailand


  • Christin Schipmann
  • Matin Qaim


Supermarkets and hypermarkets are expanding rapidly in many developing countries. While consequences for farmers and consumers were analyzed recently, little is known about the implications for traditional retail formats such as wet markets. Using data from a market survey in Thailand and hedonic regressions, we analyze quality and prices for fresh vegetables from different retail outlets. Compared to wet markets, modern retailers sell higher quality at higher prices, indicating that they are primarily targeting better-off consumers, and not directly competing for the same market segments. Yet there are signs that modern and traditional markets will gradually converge. Policy implications are discussed. Copyright 2011, Oxford University Press.

Suggested Citation

  • Christin Schipmann & Matin Qaim, 2011. "Modern Food Retailers and Traditional Markets in Developing Countries: Comparing Quality, Prices, and Competition Strategies in Thailand," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(3), pages 345-362.
  • Handle: RePEc:oup:apecpp:v:33:y:2011:i:3:p:345-362

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    References listed on IDEAS

    1. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    2. Mark D. Partridge & Dan S. Rickman, 1998. "Regional Computable General Equilibrium Modeling: A Survey and Critical Appraisal," International Regional Science Review, , vol. 21(3), pages 205-248, December.
    3. Dan S. Rickman, 2002. "A Bayesian forecasting approach to constructing regional input-output based employment multipliers," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(4), pages 483-498.
    4. Christine Wieck & David Holland, 2010. "The economic effect of the Canadian BSE outbreak on the US economy," Applied Economics, Taylor & Francis Journals, vol. 42(8), pages 935-946.
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    Cited by:

    1. Gómez, Miguel I. & Ricketts, Katie D., 2013. "Food value chain transformations in developing countries: Selected hypotheses on nutritional implications," Food Policy, Elsevier, vol. 42(C), pages 139-150.
    2. repec:pal:eurjdr:v:29:y:2017:i:4:d:10.1057_s41287-016-0062-3 is not listed on IDEAS
    3. Rischke, Ramona & Kimenju, Simon C. & Klasen, Stephan & Qaim, Matin, 2015. "Supermarkets and food consumption patterns: The case of small towns in Kenya," Food Policy, Elsevier, vol. 52(C), pages 9-21.

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