Does Organisational Form Drive Competition? Evidence from Coffee Retailing

13 Pages Posted: 14 Jun 2018

See all articles by Brian Adams

Brian Adams

Bureau of Labor Statistics

Joshua Gans

University of Toronto - Rotman School of Management

Ryan Lampe

California State University, East Bay - Department of Economics

Date Written: June 2018

Abstract

Independent and chain coffee shops offer similar products, but differ in their organisational form and branding. We examine the entry and exit patterns of 4,768 coffee retailers in Melbourne between 1991 and 2010. Panel logit regressions indicate that chain stores have no discernible effect on the exit or entry decisions of independent stores. However, chains and independents do increase the probability of exit for neighbouring stores of their own type. These findings imply that independents and chains operate almost as though they are in separate markets.

Suggested Citation

Adams, Brian and Gans, Joshua and Lampe, Ryan, Does Organisational Form Drive Competition? Evidence from Coffee Retailing (June 2018). Economic Record, Vol. 94, Issue 305, pp. 155-167, 2018, Available at SSRN: https://ssrn.com/abstract=3196146 or http://dx.doi.org/10.1111/1475-4932.12397

Brian Adams (Contact Author)

Bureau of Labor Statistics ( email )

2 Massachusetts Avenue, NE
Washington, DC 20212
United States

Joshua Gans

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

Ryan Lampe

California State University, East Bay - Department of Economics ( email )

25800 Carlos Bee Blvd.
Hayward, CA 94542
United States

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