Effect of Wal-Mart Supercenters on Grocery Prices in New England

摘要: This study examines the competitive price effect of Wal-Mart Supercenters on national brand and private label grocery prices in New England. For this purpose, we use primary data collected a basket identical products from six Massachusetts, Connecticut, Rhode Island as well sample conventional supermarkets. Taking into account demographics, store characteristics, market conditions, estimate average charged by (1) Supercenters, (2) supermarkets competing directly with (3) geographically distant Supercenters. By comparing at stores stores, show that is to decrease 6 7 percent for goods 3 goods. Price decreases are most significant dry dairy departments. Moreover, sets significantly lower than its competitors food industry.