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Do supermarkets reduce the number of traditional bookshops? An empirical application to the textbook market in Spain

Author

Listed:
  • Aday Hernandez

    ()

  • Juan Luis Jimenez

    () (University of Las Palmas de Gran Canaria. Facultad de Economía, Empresa y Turismo)

Abstract

Some countries, especially in Europe, regulate the textbook market due to its special characteristics. In 2000, the Spanish Government passed a law that relaxes resale price maintenance and lets retailers give discounts of up to 25% off the gross price. Traditional bookshops do not favour this policy. We construct a database for the Canary Islands (a Spanish Autonomous Community) on schools, bookshops, population and other control factors. Our empirical objectives are twofold: first, we explore whether malls force the exit (or encourage entry) of bookshops; second, we test whether these larger retailers decrease consumer welfare by increasing distance from schools to points of sale. The results show that malls are not as bad as bookshops claim

Suggested Citation

  • Aday Hernandez & Juan Luis Jimenez, 2011. "Do supermarkets reduce the number of traditional bookshops? An empirical application to the textbook market in Spain," ACEI Working Paper Series AWP-02-2011, Association for Cultural Economics International, revised Jul 2011.
  • Handle: RePEc:cue:wpaper:awp-02-2011
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    File URL: http://www.culturaleconomics.org/awp/AWP-02-2011.pdf
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    References listed on IDEAS

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    1. Vidar Ringstad & Knut Løyland, 2006. "The Demand for Books Estimated by Means of Consumer Survey Data," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 30(2), pages 141-155, September.
    2. Juan Jiménez & Javier Campos, 2010. "Modelling Competition in the Textbook Market: Some Lessons still to Learn," Journal of Industry, Competition and Trade, Springer, vol. 10(1), pages 71-85, March.
    3. Neil Wrigley & Julia Branson & Andrew Murdock & Graham Clarke, 2009. "Extending the Competition Commission’s findings on entry and exit of small stores in British high streets: implications for competition and planning policy," Environment and Planning A, Pion Ltd, London, vol. 41(9), pages 2063-2085, September.
    4. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
    5. Siegfried, John J. & Latta, Christopher, 1998. "Competition in the Retail College Textbook Market," Economics of Education Review, Elsevier, vol. 17(1), pages 105-115, February.
    6. Françoise Benhamou & Stéphanie Peltier, 2007. "How should cultural diversity be measured? An application using the French publishing industry," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 31(2), pages 85-107, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Textbooks; Competition; Regional economic activity;

    JEL classification:

    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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