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Full-Text Articles in Social and Behavioral Sciences
Competition And Demographics In Large Indian Cities, Mohammad Amin
Competition And Demographics In Large Indian Cities, Mohammad Amin
Mohammad Amin
Recent studies suggest that consumer-household attributes may be as important in determining the level of competition in certain markets as firm characteristics and the number of firms. However, evidence on which consumer-household attributes matter for competition is limited, especially for developing countries. Focusing on India’s retail sector, the present paper contributes to this literature by showing that the number of adult non-workers per household in the city, a proxy for shopping time opportunity cost, has a strong effect on competition between retailers. Policy implications of our findings in light of the ongoing dramatic reductions in non-workers in India are discussed.
Consumer Behavior And Competition In Retailing (A Short Note), Mohammad Amin
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 …