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Entry Regulations and Product Variety in Retail

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Title: Entry Regulations and Product Variety in Retail
Authors: Maican, Florin
Orth, Matilda
Issue Date: Apr-2021
Extent: 72
Publication type: report
Publisher: University of Gothenburg
Organization: Department of Economics, University of Gothenburg
Series/Report no.: Working Papers in Economics
Keywords: Retail markets
entry regulations
product variety
Abstract: This paper estimates a dynamic model of store adjustments in product variety that considers multiproduct service technology to evaluate the impact of entry regulations on variety and long-run profits in Swedish retail. Using rich data on stores and product categories, we find that more liberal entry regulation increases productivity and decreases the adjustment costs of variety. Counterfactual simulations of modest liberalizations of entry incentivize incumbents to offer more product categori... more
ISSN: 1403-2465
Description: L11; L13; L81
Appears in Collections:Working papers



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