Show simple item record

dc.contributor.author Beresteanu, A. en_US
dc.contributor.author Ellickson, Paul en_US
dc.date.accessioned 2010-06-28T19:05:31Z
dc.date.available 2010-06-28T19:05:31Z
dc.date.issued 2005 en_US
dc.identifier.uri http://hdl.handle.net/10161/2638
dc.description.abstract This paper examines competition between supermarket chains using a dynamic model of strategic investment. Employing a unique eleven year panel dataset of store level observations that includes every supermarket operating in the United States, we propose and estimate a fully dynamic model of chain level competition. Using a struc- tural model of dynamic oligopoly where firms compete each period in a static stage game, we estimate the dynamic parameters of the model using the methods proposed in Bajari, Benkard, and Levin (2006). The estimation takes place in two stages. In the first stage, the static parameters governing the outcome of product market competition are estimated using a differentiated products discrete choice demand system. We then employ a second, two-step procedure in which policy functions are first estimated from each firm’s observed actions and outcomes are then matched to a (Markov perfect) equi- librium condition using forward simulation. The parameters of the structural model will then be used to evaluate the competitive impact of eliminating Superscenters using the stochastic algorithm developed in Pakes and McGuire (2001). en_US
dc.format.extent 223358 bytes
dc.format.mimetype application/pdf
dc.language.iso en_US
dc.publisher Manuscript. Department of Economics. Duke University en_US
dc.subject Competition en_US
dc.subject strategic investment en_US
dc.subject supermarket chains en_US
dc.title The dynamics of retail oligopoly en_US
dc.type Working paper en_US
dc.department Economics

Files in this item

This item appears in the following Collection(s)

Show simple item record