Regional Competition, "Big Box" Entry, and Regional Welfare: Theory and Evidence.

Proulx, Kevin B.


  • I use a spatially differentiated model similar to that of Salop (1979) and modified more recently by Norman, Pepall, and Richards (2008) to model local retail competition and to analyze the welfare implications of later entry by a cost-advantaged "fast second" meant to be a large "big box" firm such as Wal-Mart or Home Depot. I show that when the market is contestable the local welfare remains ... read more
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