August 6, 2012
The Economics of Supermarkets: A Brief Literature Review
Posted by D. Daniel Sokol
Leandro Zipitria, Universidad de Montevideo provides his thoughts on The Economics of Supermarkets: A Brief Literature Review.
ABSTRACT: This article presents a brief review of the literature on the effect of supermarkets on productivity, employment, the survival of small retailers, prices, and competition in retailing. The following stylized facts emerge: (1) the retail sector has undergone a major concentration around the world, (2) the entry of supermarkets tends to expel small competing groceries, and encourage the entry or conversion of others; (3) supermarkets are a source of productivity gains in the sector, (4) they generates a net increase in employment, and (5) has the effect of reducing the level of prices in markets where entry occurs. Some qualifications to these general conclusions are discussed.
August 6, 2012 | Permalink
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