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David versus Goliath? The impact of corporate expansion in the alcohol retail industry on incumbent small-scale retailers

2024/11/01 by Cristina Connolly, Marcello Graziano, Sandro Steinbach · 1 voice
Business, Management and Accounting · #Consumer Market Behavior and Pricing #Digital Platforms and Economics #Wine Industry and Tourism

paper · pdf · doi:10.1017/jwe.2024.24

openalex publication_date 2024/11/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/05/21

Abstract

Abstract This paper investigates the impact of corporate expansion in the alcohol retail industry on small-scale retailers. Our empirical approach exploits the timing of corporate entries across U.S. states that do not have a state monopoly to examine entry effects based on proximity to incumbent retailers. The analysis, drawing on a comprehensive dataset of U.S. alcohol retailers from 2000 to 2020, reveals that corporate entries within a 1-mile radius positively impact the employment and revenue of nearby small-scale retailers, with these effects intensifying over time and being more pronounced in metropolitan markets. Despite these localized impacts, the overall market structure and firm behavior remain largely unaffected.

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