Hump-Shaped Cross-Price Effects and the Extensive Margin in Cross-Border Shopping

• 成果类型: Article
• 署名作者: Friberg, Richard; Steen, Frode; Ulsaker, Simen A.
• 署名单位: Stockholm School of Economics; Stockholm School of Economics
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• DOI: 10.1257/mic.20190302
• 发表日期: 2022
• 页码: 408-438
• 关键词: Retail Trade; demand; COMPETITION; location; DYNAMICS

摘要

This paper examines the effect of cross-border shopping on grocery demand in Norway using monthly store x category sales data from Norway's largest grocery chain 2012-2016. The sensitivity of demand to the foreign price is hump-shaped and greatest 30-60 minutes' driving distance from the closest foreign store. Combining continuous demand, fixed costs of cross-border shopping, and linear transport costs a la Hotelling, we show how this hump shape can arise through a combination of intensive and extensive margins of cross-border shopping. Our conclusions are further supported by novel survey evidence and cross-border traffic data.