IDEAS home Printed from https://ideas.repec.org/p/ags/aaea10/61800.html
   My bibliography  Save this paper

The Impact of Wal-Mart Supercenters on Supermarkets’ Profit Margins

Author

Listed:
  • Liu, Xiaoou
  • Lopez, Rigoberto A.

Abstract

The Impact of Wal-Mart Supercenters on Supermarkets’ Profit Margins. XIAOOU LIU (Email: xiaoou2010@gmail.com, School of Agricultural Economics and Rural Development, Renmin University of China, Beijing, China 100872) RIGOBERTO LOPEZ (Professor and Department Head, Department of Agricultural and Resource Economics, Storrs, CT 06269) This paper quantifies the impact of Wal-Mart Supercenters on supermarkets’ profitability via a two-stage dynamic entry game, using simulated methods of moment and milk scanner data from Dallas/Fort Worth supermarkets. The empirical findings show that the entry of Wal-Mart Supercenters accounts for about an average of 50% decreases in profit margins for incumbent supermarkets. The effect of scale of economies is found to be more significant for Wal-Mart Supercenters than for incumbent supermarkets.

Suggested Citation

  • Liu, Xiaoou & Lopez, Rigoberto A., 2010. "The Impact of Wal-Mart Supercenters on Supermarkets’ Profit Margins," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61800, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61800
    DOI: 10.22004/ag.econ.61800
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/61800/files/The%20Impact%20of%20Wal-mart-2010%20AAEA%20SP%2010713.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.61800?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Seenivasan, Satheesh & Talukdar, Debabrata, 2016. "Competitive Effects of Wal-Mart Supercenter Entry: Moderating Roles of Category and Brand Characteristics," Journal of Retailing, Elsevier, vol. 92(2), pages 218-225.

    More about this item

    Keywords

    Industrial Organization;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea10:61800. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.