@article{Widenhorn:182777,
      recid = {182777},
      author = {Widenhorn, Andreas and Salhofer, Klaus},
      title = {Differentiation in demand with different food retail  formats},
      address = {2014-08},
      number = {727-2016-50317},
      pages = {12},
      year = {2014},
      abstract = {Recently, discount stores have gained importance in food  retailing. We investigate whether certain types of  consumers have turned towards particular formats, both in  terms of socio-demographic characteristics and  responsiveness to price changes. The distinctiveness of  discount consumers is analyzed utilizing dynamic probit  models with Heckman-type selection to estimate the factors  influencing a household’s propensity to visit a discount  store and its overall spending in discounters. In addition,  we estimate price and expenditure elasticities for nine  product groups in discounters and supermarkets based on a  two-step estimation method account for censoring in the  food budget shares. Our results indicate that income  constraints play a key role in the choice of discount  stores, while differences in the overall price levels lead  to higher frequentation of discounters. The latter effect  tends to be mainly driven by demand responses in  supermarkets, where demand for all nine considered product  groups is found to be statistically more responsive to  inner-format price changes than demand within discount  stores. However, we find that discount store demand  increases significantly stronger as supermarket prices go  up, than is the case for supermarket demand when discount  store prices are raised.},
      url = {http://ageconsearch.umn.edu/record/182777},
      doi = {https://doi.org/10.22004/ag.econ.182777},
}