Antitrust & Competition Policy Blog

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

A Member of the Law Professor Blogs Network

Thursday, February 23, 2012

Who Is Hurt by E-commerce? Crowding out and Business Stealing in Online Grocery

Posted by D. Daniel Sokol

Andrea Pozzi (EIEF) asks Who Is Hurt by E-commerce? Crowding out and Business Stealing in Online Grocery.

ABSTRACT: I study the impact of e-commerce on competition in retail markets. Using scanner data from a large chain that markets grocery online and through traditional stores, I illustrate that selling online reduces the barrier of geographic differentiation and allows stealing business from competitors. Between 60% and 70% of the sales made online by the chain are stolen from other grocers, the rest coming from self cannibalization. I show that small stores are suffering the largest losses from this reallocation of market shares, as they were more heavily relying on geographic differentiation to survive the competitive pressure of big-box stores.

http://lawprofessors.typepad.com/antitrustprof_blog/2012/02/who-is-hurt-by-e-commerce-crowding-out-and-business-stealing-in-online-grocery.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef016760f267ca970b

Listed below are links to weblogs that reference Who Is Hurt by E-commerce? Crowding out and Business Stealing in Online Grocery:

Comments

Post a comment