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Essay text:
Wal-Mart competes more intensely with other mass merchants, and conditional on price and distance, the average consumer still prefers Wal-Mart over most other stores. I also consider a counterfactual experiment regarding the entry of Wal-Mart into 15 proposed store sites in California.
JEL classification: C25, L81
Keywords: discrete choice, retail, Wal-Mart, cross-channel competition
* I would like to thank Glenn Ellison, Nancy Rose, Paul Joskow, and Sara Fisher Ellison for advice and helpful
suggestions. This paper has benefited from conversations with Emek Basker, Melissa Boyle, Norma Coe, Jerry Hausman, Joanna Lahey, Allison McKie, Erich Muehlegger, Aviv Nevo, Whitney Newey, Kenneth Train, Joan Walker, Birger Wernerfelt, and participants of several workshops, including the MIT Industrial Organization Workshop and Econometrics Lunch...
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