| Autor: |
Md. Rafayet Alam, A.K.M. Mahbub Morshed |
| Rok vydání: |
2021 |
| Předmět: |
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| Zdroj: |
Economic Analysis and Policy. 71:227-237 |
| ISSN: |
0313-5926 |
| DOI: |
10.1016/j.eap.2021.04.016 |
| Popis: |
This study examines the effect of Walmart on price dispersion across US cities. Although US retail architecture has been changed over the past two decades by the expansion of big-box chain-stores such as Walmart, the impact of such market consolidation on price dispersion is not examined rigorously. Using opening/conversion dates of Walmart and good-specific quarterly retail prices for 101 US cities over 25 years, we examine the role of Walmart on price dispersion across US cities. Our analysis shows that price dispersion in a city-pair increases when Walmart enters one of the cities in the pair. When Walmart enters the other city of the city-pair, price dispersion falls from that increased level but the fall is not enough to bring the price dispersion back to the level where there is no Walmart in the city-pair. This finding implies that Walmart drives down prices in ‘early’ cities more than in ‘late’ cities and that prevalence of big-box stores may be one of the reasons for price dispersion across cities. |
| Databáze: |
OpenAIRE |
| Externí odkaz: |
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Full Text from ScienceDirect