This paper presents empirical evidence that endogenous fixed costs play a central role in determiningthe equilibrium structure of the supermarket industry. Using the framework developedin Sutton (1991), I construct a model of supermarket competition where escalating investment infirm level...

This paper examines competition between supermarket chains using a dynamicmodel of strategic investment. Employing a unique eleven year panel dataset of storelevel observations that includes every supermarket operating in the United States, wepropose and estimate a fully dynamic model of chain...

When modeling the behavior of firms, marketers and micro-economists routinely confront complex problems of strategic interaction. In competitive environments, firms make strategic decisions that not only depend on the features of the market, but also on their beliefs regarding the reactions of...

We measure the revenue and cost implications to supermarkets of changing their price positioning strategy in oligopolistic downstream retail markets. Our estimates have implications for long-run market structure in the supermarket industry, and for measuring the sources of price rigidity in the...

This paper empirically examines the impact of entry by Wal-Mart on competition in the supermarket industry. Using a detailed panel dataset spanning 1994 to 2006, we estimate the impact of Wal-Mart on firm outcomes and market structure, controlling for persistent local trends and systematic...

The main goal of this paper is to develop an empirical framework for evaluating the patient welfare benefits arising from pharmaceutical innovation. Extending previous studies of the welfare benefits from innovation (Trajtenberg, 1990; Hausman, 1996), this paper unpacks the separate choices made by...