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Get The Localized Competitive Price Impact Of Wal-Mart Entry

Hain discount retailer such as WalMart into a local market will likely impact prices. This paper focuses on estimating the short-run price changes of existing retailers in response to new competition from Wal-Mart. We find that within 5 miles of a two year old Wal-Mart the prices of products sold by Wal-Mart are 2.26% lower than they would have been otherwise. Additionally, this price effect decreases as the distance from Wal-Mart increases. While this effect is dominated by energy price changes.

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