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

38 Pages Posted: 5 May 2009

See all articles by Lesley Chiou

Lesley Chiou

Occidental College - Department of Economics

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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.

Suggested Citation

Chiou, Lesley, Empirical Analysis of Competition between Wal-Mart and Other Retail Channels. Journal of Economics & Management Strategy, Vol. 18, Issue 2, pp. 285-322, Summer 2009, Available at SSRN: https://ssrn.com/abstract=1396924 or http://dx.doi.org/10.1111/j.1530-9134.2009.00215.x

Lesley Chiou (Contact Author)

Occidental College - Department of Economics ( email )

1600 Campus Road
Los Angeles, CA 90041
United States

HOME PAGE: http://www.faculty.oxy.edu/lchiou

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