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This paper examines a grocery retailer’s management of a premade food product. The retailer’s goal is to maximize a weighted sum of direct profit and customer welfare. Multiple items of the product are produced in batches and displayed for sale. Considering that each item’s quality...
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I develop a dynamic oligopoly model to study the evolution of retail grocery: Grocery chains expand at the expense of independent local stores. Model estimation only requires panel data on store counts and market demand, yet it quantifies the determinants of chain stores' entry and the...
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From modest beginnings as a tea shop in New York, the Great Atlantic & Pacific Tea Company became the largest retailer in the world. It was a juggernaut, the first retailer to sell 1 billion dollars in goods, the owner of nearly sixteen thousand stores and dozens of factories and warehouses. But...
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This paper analyses the extent of inter-format retail competition between supermarkets, discounters and drugstores in Germany, using data from the German market for diapers. We estimate a random coefficient logit model at the individual household level. Based on consumer substitution patterns,...
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