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Supermarket Entry and its effect on small stores in Montevideo, 1998 to 2007

Author

Listed:
  • Fernando Borraz

    (Banco Central del Uruguay)

  • Juan Dubra

    (Universidad de Montevideo (Uruguay))

  • Daniel Ferrés

    (Universidad de Montevideo (Uruguay))

  • Leandro Zipitría

    (Universidad de Montevideo (Uruguay)
    Dirección General de Comercio, Ministerio de Economía y Finanzas (Uruguay))

Abstract

We analyze the effect of supermarket entry on small grocery retailers’ exit in the retailing sector in Montevideo between 1998 and 2007. We show that the entry of one supermarket in a small store’s neighborhood increases its chance exiting the market in that year by 1.2% on average. The result is robust to several model specifications, and varying definitions of what constitutes a supermarket.

Suggested Citation

  • Fernando Borraz & Juan Dubra & Daniel Ferrés & Leandro Zipitría, 2009. "Supermarket Entry and its effect on small stores in Montevideo, 1998 to 2007," Documentos de trabajo 2009005, Banco Central del Uruguay.
    • Handle: RePEc:bku:doctra:2009005
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    File Function: First version, 2009
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    References listed on IDEAS

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    More about this item

    Keywords

    Supermarket; small grocery; entry; Uruguay;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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