Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

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Thursday, August 27, 2009

Empirical Analysis of Competition between Wal-Mart and Other Retail Channels

Posted by D. Daniel Sokol

Lesley Chiou, Occidental College - Department of Economics provides an Empirical Analysis of Competition between Wal-Mart and Other Retail Channels.

ABSTRACT: This paper quantifies the degree of competition between Wal-Mart and different retail channels by exploiting a unique dataset that describes a consumer's choice of store. Using a discrete choice model, I estimate a consumer's choice of retailer in the sales market for DVDs among online, mass merchant, electronics, video specialty, and music stores. Wal-Mart competes more intensely with other mass merchants, and conditional on price and distance, the average consumer still prefers Wal-Mart to most other stores. I also consider a counterfactual experiment regarding the entry of Wal-Mart into 15 proposed store sites into California.

http://lawprofessors.typepad.com/antitrustprof_blog/2009/08/empirical-analysis-of-competition-between-walmart-and-other-retail-channels.html

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