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Entry and Exit in Grocery Retailing: Local Pre-Emption and Social Efficiency.

Abstract:

This paper develops an asymmetric price setting oligopoly model of store opening and closure decisions in the UK supermarket industry which is estimated using a survey of consumer choices and a dataset of store characteristics. The model is used to examine the strategic local entry and exit behaviour of the firms and the social efficiency of stores numbers and store characteristics. It is found that firms use store openings to pre-empt rival competition and there is a degree of local clusteri...

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Publisher:
Department of Economics (University of Oxford)
Series:
Discussion paper series
Publication date:
2000-01-01
UUID:
uuid:0d608cae-f9fd-423f-a5c2-6e5de04652ad
Local pid:
ora:1043
Deposit date:
2011-08-16

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