Working Paper Series
Productivity Dynamics and the Role of “Big-Box” Entrants in Retailing
() and Matilda Orth
Abstract: Entry of large ("big-box") stores along with a drastic
fall in the number of stores are striking trends in retail. We use a
dynamic model to measure the impact of large entrants on productivity,
allowing for a controlled productivity process and accounting for prices,
local markets, and the endogeneity of entry. Using data on all retail food
stores in Sweden, we find that incumbents' productivity increase after
large entry and that the magnitude of the increase declines with the
productivity of incumbents. Our findings highlight that large entrants play
a crucial role in driving productivity growth.
Keywords: Retail markets; Imperfect competition; Industry dynamics; Productivity; Dynamic structural model; (follow links to similar papers)
JEL-Codes: C24; L11; L50; L81; O30; (follow links to similar papers)
72 pages, January 18, 2012, Revised December 11, 2014
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom