Social and Behavioral Sciences Commons^™

Consumer Behavior And Competition In Retailing (A Short Note), Mohammad Amin

Mohammad Amin

Drawing on a small but growing literature, this note argues that consumer behavior may be as important as firm behavior for the level of competition in consumer industries such as retailing. We use data on 1.948 retail stores in India and contribute to the literature in three ways. First, we find that the number of non-workers in the household, a proxy for time cost of shopping, has a large effect on competition. Moving from the city with the least to the most number of non-workers increases competition by 84% of its mean level. Second, as suggested in the literature, we …