Empirical Analysis of

Competition between

Wal-Mart and Other Retail Channels






Lesley Chiou
January 2008



Abstract

This paper quantifies the degree of competition among 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 over most other stores. I also consider a counterfactual experiment regarding the entry of Wal-Mart into 15 proposed store sites in California.




JEL classification: C25, L81
Keywords: discrete choice, retail, Wal-Mart, cross-channel competition





* I would like to thank Glenn Ellison, Nancy......

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Title: Empirical Analysis Of Competition Between Wal-Mart And Other Retail Channels
Approximate Word Count: 11888
Approximate Pages: 48 (250 words per double-spaced page)

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