Three Essays On Retail Price Competition PDF Download
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| Author | : Taehwan Kim (Ph.D. in Economics) |
| Publisher | : |
| Total Pages | : 86 |
| Release | : 2018 |
| Genre | : |
| ISBN | : |
Download Three Essays on Retail Price Competition Book in PDF, ePub and Kindle
This dissertation consists of three chapters. The first chapter examines price dispersion in retail gasoline and focuses on differentiation along the service dimension: full service versus self service. Consistent with more intensive search by self-service customers, I find that price dispersion always decreases with the number of nearby self-service stations, but does not decrease with the number of nearby full-service stations. When I segment the market by brand, I observe that the estimates are sensitive to how brands are separated into different types. These findings show that the market is more clearly segmented by service level than by brand type and also highlight the importance of product differentiation when modeling price dispersion. In the second chapter, I examine product positioning and pricing strategies of sellers in a market undergoing a significant restructuring using data from the introduction of self-service technology in the Korean gasoline market in the 2000s. I show that the decision of full-service sellers to exit or switch to self service is positively correlated with the intensity of competition they face. The pricing strategies of sellers differ by product position: self-service sellers compete for price-sensitive consumers, whereas full-service sellers differentiate their product by offering a variety of bundled products and services, such as coffee, carwash or even a nail salon, to compete for less-price-sensitive consumers. Taken together, these patterns have led to an increase in the full-service premium during the market transition. In the third chapter, I study the effect of a government contract on price. Since 2013, Korean government officials have been required to refuel at contracted gasoline stations, at about 5% discounts relative to the posted price. The initial contract terminated in November 2015 and a new group of sellers took over the contract. In this paper, I use this natural experiment to examine the impact of the government contract on gasoline prices, using a difference-in-difference analysis and price data on all gasoline stations in Seoul. I find that, all else equal, posted prices of contracted gasoline stations are about 2% higher than those of non-contracted stations. This finding is consistent with the prediction of models of price discrimination that prices decrease when the elasticity of demand falls. The effect on prices is not uniform across all stations, however. The contract leads to larger increases in full-service stations' posted prices than in self-service stations' prices, and larger increases at stations with fewer nearby competitors. The contract also decreases prices of non-contracted stations very close to contracted stations.
| Author | : Eidan Apelbaum |
| Publisher | : |
| Total Pages | : 210 |
| Release | : 2000 |
| Genre | : Brand name products |
| ISBN | : |
Download Three Essays on the Competition Between National Brand and Private Label Food Products Book in PDF, ePub and Kindle
| Author | : Andres Elberg |
| Publisher | : |
| Total Pages | : 250 |
| Release | : 2010 |
| Genre | : |
| ISBN | : |
Download Three Essays on Retail Price Dynamics Book in PDF, ePub and Kindle
This dissertation consists of three essays on the dynamics of retail prices. The first chapter uses a novel data set of weekly-sampled store-level retail prices for narrowly defined goods observed across 12 cities in Mexico to study the relative magnitude of aggregation biases in estimates of convergence to the Law of One Price (LOP). I find that temporal aggregation can severely bias estimates of persistence in relative prices. Both panel estimations of higher-order autoregressive processes and Monte Carlo experiments suggest that using quarterly aggregated data (from weekly-sampled data) can overestimate the half-life of deviations from the Law of One Price (LOP) by a factor of 4. I do not find evidence that pooling across goods with heterogeneous dynamics biases persistence estimates. The analysis also suggests that intercity prices converge rapidly to the LOP in an absolute sense (the median half-life is estimated at 3 weeks) and the existence of only a weak association between price gaps across cities and physical distance. The second chapter studies patterns of retail price adjustment at the store level using a unique scanner data set of weekly retail prices, quantities sold and wholesale costs for a cross-section of retailers in Chile. In line with evidence reported for the U.S. (Eichenbaum, Jaimovich and Rebelo, 2010; Klenow and Malin, 2010), posted prices tend to revolve around more persistent reference prices. The implied duration of reference prices is estimated at 2-3 quarters versus 3-4 weeks in the case of posted prices. I find strong evidence that reference prices respond to retailer-level shocks. Comovement in the reference price of a given barcode across retailers is found to be significantly larger for stores belonging to the same retail chain than for stores that belong to different retail chains. Furthermore, most of the variation in the frequency of reference price adjustment is explained by "chain effects". Evidence on the synchronization of price changes suggests that price changes tend to be staggered across stores belonging to different retail chains but synchronized within chains. The third chapter uses a scanner dataset including weekly prices and costs from a large retailer in Chile to study the relationship between price rigidities and intra-national deviations from the law of one price (LOP). I find that, controlling for transportation costs (proxied by distance), more flexible prices are associated with a larger volatility of deviations from the LOP. The effect is econominally non-negligible and holds for both retail- and wholesale-level prices. The distance equivalent of a 0.01 change in the frequency of retail (wholesale) price change is estimated at 370 (294) kilometers.
| Author | : Jia Li |
| Publisher | : |
| Total Pages | : 126 |
| Release | : 2010 |
| Genre | : Electronic dissertations |
| ISBN | : |
Download Three Essays on Retail Management Book in PDF, ePub and Kindle
This dissertation contains three essays studying several important issues on retail management. Essay 1 examines the effect of a retailing management change on retail price and sales in a large retailing store, which in recent years has switched many of its product categories from the retailer-managed to the manufacturer-managed system. I find that this change caused overall retail prices to decrease. However, there was significant heterogeneity in the response across brands. For the cell phone category that we study, brands with a high market share, inelastic demand and low demand variability have not changed prices. For another watch category, retail prices of low- and medium-tier brands have decreased, yet prices of high-tier brands have increased by 16 percent after the change. In addition to sales increases due to lower prices we find that the management change further causes the sales to increase by 9 - 10 percent for the cell phone category and 11 - 17 percent for the watch category, perhaps indicating an increased investment in selling effort from manufacturers. In the essay 2, I demonstrate some important new findings on how compensation systems impact peer effects by changing worker incentives to help and compete with peers within and across firms. First, high-ability workers improve peer productivity under team-based compensation while hurting peers under individual-based compensation. Second, I document peer effects across firm boundaries that also depend on compensation. Third, I find that compensation systems influence workers' strategic price discounting and customer focus in response to peers. My results suggest that heterogeneity in worker ability enhances team performance under team-based compensation while hurting individual-based firms. The essay 3 studies the impact of peers on coworker learning in a retail setting. Using four years of individual cosmetic sales data from a Chinese department store, I incorporate peer-based learning into a model with learning-by-doing and forgetting. I observe peer-based learning both within and across firm boundaries, identifying that the relative ability of coworkers impacts the learning rate of a salesperson. Using two sales tasks of different difficulty, I observe evidence consistent with the presence of both active teaching and learning through observation. This study shows that the inter-organizational knowledge spillovers observed in past studies have micro-foundations in the individual employees.
| Author | : Liping Zhang |
| Publisher | : |
| Total Pages | : 256 |
| Release | : 2005 |
| Genre | : University of Ottawa theses |
| ISBN | : |
Download Three Essays on Low-price Guarantees Book in PDF, ePub and Kindle
| Author | : Lori Lynn Parcel |
| Publisher | : |
| Total Pages | : 362 |
| Release | : 2008 |
| Genre | : |
| ISBN | : |
Download Three Essays in Applied Microeconomics Book in PDF, ePub and Kindle
| Author | : |
| Publisher | : |
| Total Pages | : 168 |
| Release | : 2011 |
| Genre | : Competition |
| ISBN | : |
Download Three Essays in Competition Consumer Policy Book in PDF, ePub and Kindle
The thesis is made up of three chapters: The first chapter estimates the effects of antitrust investigations on the market value of the investigated firms. This analysis offers insights on the performance of competition policy and its enforcement. The interest is on investigations carried out by the Italian Competition Authority between 1991 and 2007. We find that the start of the investigation is associated with an average drop of 0.6% in the market value of investigated firms and a later infringement decision implies an average drop of 1%. The event associated with the highest impact is the decision of the last Court of Appeal. When the last Court upholds the Authority's infringement decision the market value of firms drops between 3% and 6%. Interestingly, there is no effect when the last Court annuls the Authority's decision. The second and third chapters study the effects, on retail fuel prices, of a price comparison policy (a typical consumer policy intervention) introduced in the Italian pay-toll highways refueling market. In particular, the second chapter performs an empirical analysis while the third chapter presents an agent based computational economic (ACE) model, which aims to rationalize the empirical evidence and to inform the policy design. Differently from what was expected (by policy makers and consumers associations), the empirical analysis finds that the price comparison policy is associated with a small, but statistically significant, increase in the average price of fuel (0.55 euro cents per liter). Nevertheless, despite this average increase in fuel prices, the policy might help (active) consumers make informed choices and save around 1 euro cent per liter. The ACE model predicts that the introduction of price comparison has a limited effect on market prices as price competition among retailers is only marginally fostered. In addition, the model suggests that consumers that make use of price comparison might save around 0.5 euro cents per liter. These results are consistent with the empirical findings in suggesting that the price comparison policy had a limited impact on fuel retail prices and the overall effect on consumers is mixed.
| Author | : Satheeshkumar Seenivasan |
| Publisher | : |
| Total Pages | : 125 |
| Release | : 2011 |
| Genre | : |
| ISBN | : |
Download Creating and Seeking "value" in Supermarkets Book in PDF, ePub and Kindle
As consumers become more and more value conscious as well as sophisticated in searching for more value in what they buy, it becomes necessary for retailers to understand and offer the right value proposition sought by their consumers. This dissertation consists of three essays that investigate how consumers seek value, and how retailers create value proposition through their own label store brands. Specifically, the first essay focuses on understanding the store patronage behavior of consumers who seek value through store brands. Here we investigate whether store brands help in building store differentiation and loyalty besides catering to value conscious consumers. We also analyze the moderating effects of household spatial configuration, store brand quality and category characteristics on the store differentiation ability of store brands. In the second essay, we explore the consumer value seeking tendency during economic downturns. Here, we investigate the dynamics in consumer brand preferences and response sensitivities during the recent Great recession to understand the factors driving high store brand shares and to infer the long run consequences of recession time consumer behavior. We find that persistence in store brand shares post recession are driven by the combined effects of persisting marketing mix sensitivities, inertia and preference updation due to learning. In the third essay, we study the brand level impact of the entry of Wal-Mart supercenter. We further investigate whether offering increased value proposition through economy store brands will help a retailer in competing against supercenters. We demonstrate that store brands could be effective tools even when competing with value mass merchandisers like Wal-Mart supercenters.
| Author | : Fan Liu (Ph. D.) |
| Publisher | : |
| Total Pages | : 268 |
| Release | : 2017 |
| Genre | : |
| ISBN | : |
Download Three Essays on Pricing Strategies Book in PDF, ePub and Kindle
Pricing is one of the most vital topic within the theory of Microeconomics. A firm can use a variety of pricing strategies to maximize its profit, gain market share, enter a new market or prevent potential entrants. This dissertation contains three essays exploring the equilibrium effect of various pricing strategies. The first chapter, co-authored with David S. Sibley and Wei Zhao, examines the effects of two types of vertical restrictions that are found in the cigarette and soft drink industries. In one case, a manufacturer gives discounts to the retailer in return for a commitment that the manufacturers product be priced no higher than a specified competing product. We refer to this as a vertical MFN (VMFN). The second is an agreement where the retailer commits to price in such a way that its margin on the product is no higher than the equivalent margin on a specified competing product. We refer to this as a vertical margin constraint (VMC). We show that the VMFN results in equilibrium prices that are higher than in a benchmark case without the constraint. In contrast, the VMC constraint leads to uniformly lower prices. The distributional effects are different, too. The VMFN tends to raise manufacturer profits, if different manufacturers produce very similar products. The retailer is worse off. The opposite effects arise in the VMC case. The second chapter analyzes firms giving switching discounts to consumers who purchased from their rivals rather than own past customers. By analyzing a two-period duopoly model with horizontal differentiation, we find that when the intrinsic value of the product is not high enough to make sure that the consumers will buy at least one of the product, the dynamic price path featured in the previous literature involving a raised second period price for customers with relatively high valuation will be reversed. Moreover, offering switching discounts results in a profit lower than the benchmark case, where such a pricing strategy is unavailable. The third chapter discusses how bundled discounts affect firm's decision of extending the product line by versioning the product through horizontal differentiation or vertical quality degrading. We propose a framework showing that inter-firm mixed bundling schemes may incentivize the introduction of a differentiated product, while in the absence of bundling it may not be profitable to do so. However, the consumer's surplus gain as a result of intensified competition and increased variety of goods from versioning will be dominated by the negative welfare impacts of bundling.
| Author | : Mark J. Lasky |
| Publisher | : Routledge |
| Total Pages | : 157 |
| Release | : 2015-03-27 |
| Genre | : Business & Economics |
| ISBN | : 1317502515 |
Download Three Essays on Productivity (RLE: Business Cycles) Book in PDF, ePub and Kindle
The behaviour of US productivity since this book was originally publishedin 1994, has added new relevance to the relationship between profits and productivity. In the long run, productivity growth determines the economic standard of living. This book is divided into three parts: the basis of the first is the empirical finding that, controlling for normal business cycle effects, productivity grows faster when profits have been low than otherwise. The second part discusses how to measure marginal cost using time series data and the third tests a basic assumption that productivity growth is exogenous to labour and capital.
