{"title":"Hump-Shaped Cross-Price Effects and the Extensive Margin in Cross-Border Shopping","authors":"Frode Steen, Simen A. Ulsaker, Richard Friberg","doi":"10.2139/ssrn.3305073","DOIUrl":null,"url":null,"abstract":"This paper examines the effect of cross-border shopping on grocery demand in Norway using monthly store × 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. (JEL D12, F31, L11, L81)","PeriodicalId":111949,"journal":{"name":"Econometric Modeling: Microeconometric Models of Household Behavior eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2018-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"27","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Econometric Modeling: Microeconometric Models of Household Behavior eJournal","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.3305073","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 27
Abstract
This paper examines the effect of cross-border shopping on grocery demand in Norway using monthly store × 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. (JEL D12, F31, L11, L81)
京公网安备 11010802042870号
京ICP备2023020795号-1
分享
求助内容：
应助结果提醒方式：
扫码关注我们
