One size fits all? The value of standardized retail chains

• 成果类型: Article
• 署名作者: Klopack, Ben
• 署名单位: Texas A&M University System; Texas A&M University College Station
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12458
• 发表日期: 2024
• 页码: 55-86
• 关键词: DECISION-MAKING; wal-mart; entry; economies; prices; FIRMS

摘要

Multi-outlet firms, or chains, account for most US retail spending. This article quantifies the welfare and profit effects of standardized chains in the restaurant industry: chains face higher demand than independents, but are less flexible in customizing product selection or prices across locations. I find that on average chains could earn 19% higher variable profits if they could customize their product optimally, but they would lose 28% of their variable profits if they were to lose their demand advantages. Local policies that ban chains would decrease consumer welfare by 1.5% to 5.4% of restaurant spending and disproportionately impact lower income consumers.