Do supermarkets reduce the number of traditional bookshops? An empirical application to the textbook market in Spain
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
|Date of creation:||Jul 2011|
|Date of revision:||Jul 2011|
|Contact details of provider:|| Web page: http://www.culturaleconomics.org/|
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- 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.
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- Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
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- 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.
- 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.
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