Retail gasoline sales generally take place in an incredibly competitive environment with highly visible prices, many competitors, and homogeneous goods. Here, we show how price–cost margins have changed era of drastic changes to transportation choices. We find that increasing COVID-19 case rates increased firms’ market power the retail sector, effectively halving station-level price elasticity ...

Measuring value and interest rate risk in retail financial markets such as the market for consumer deposits has proven to be a very difficult problem for financial firms. Standard models of value and interest rate risk (duration), based on the competitive market paradigm, are inappropriate in retail markets characterized by sluggish price and quantity behavior. Although the penetration of sophi...

During periods of market stress, electricity prices can rise dramatically. Electricity retailers cannot pass these extreme prices on to customers because of retail price regulation. Improved prediction of these price spikes, therefore, is important for risk management. This paper builds a time-varying-probability Markov-switching model of Queensland electricity prices, aimed particularly at for...

In this paper, we construct a model incorporating the retail trader’s reluctance to sell into losses. We show that in this setup the informed trader always buys the asset when he receives a favorable signal. However, when the informed trader receives an unfavorable signal, he may not sell the asset if the signal is moderately bad and the retail trader is reluctant to realize losses. Hence the a...

This paper presents empirical evidence that endogenous fixed costs play a central role in determining the equilibrium structure of the retail food industry. Using the framework developed in Sutton [Sutton, J. (1991). Sunk Cost and Market Structure: Price Competition, Advertising, and the Evolution of Concentration (MIT Press, Cambridge).], I construct a structural model of retail competition in...

T his study develops an analytical model to evaluate competing retail firms’ sourcing strategies in the presence of supply uncertainty. We consider a common supplier that sells its uncertain supply to two downstream retail firms engaging in price competition in a horizontally differentiated product market. The focal firm has a dual-sourcing option, while the rival firm can only source from the ...

Retail is the largest private industry in the world which accounts for 8 % GDP. In countries like US, UK, Germany, France major market share is in larger formats of business in terms of retail activities, categories, range, brands, and volumes etc. Indian retail industry is slowly inching its way towards becoming the next boom industry, as retail sector has been getting major attention from the...