Does Big Drive Out Small?
- Mitsuru IgamiAffiliated withUCLA Anderson School of Management Email author
This paper measures the impact of the entry of large supermarkets on incumbents of various sizes. Contrary to the conventional notion that big stores drive small rivals out of the market, data from Tokyo in the 1990s show that large supermarkets’ entry induces the exit of existing large and medium-size competitors, but improves the survival rate of small supermarkets. These findings highlight the role of store size as an important dimension of product differentiation. Size-based entry regulations would appear to protect big incumbents, at the expense of small incumbents and potential entrants.
KeywordsDeregulation Entry and exit Product differentiation Retail
JEL ClassificationL11 L13 L51 L81
- Does Big Drive Out Small?
- Open Access
- Available under Open Access This content is freely available online to anyone, anywhere at any time.
Review of Industrial Organization
Volume 38, Issue 1 , pp 1-21
- Cover Date
- Print ISSN
- Online ISSN
- Springer US
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- Entry and exit
- Product differentiation
- Industry Sectors
- Mitsuru Igami (1)
- Author Affiliations
- 1. UCLA Anderson School of Management, 110 Westwood Plaza C-525, Los Angeles, CA, 90095, USA