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1 results

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

  • Cristina Connolly, Marcello Graziano, Sandro Steinbach
  • Journal:
    Journal of Wine Economics , First View
    Published online by Cambridge University Press:
    22 November 2024, pp. 1-13
    • Article
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  • 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.