Replication data for: The Causal Effect of Competition on Prices and Quality: Evidence from a Field Experiment
Principal Investigator(s): View help for Principal Investigator(s) Matias Busso; Sebastian Galiani
Version: View help for Version V1
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Project Citation:
Busso, Matias, and Galiani, Sebastian. Replication data for: The Causal Effect of Competition on Prices and Quality: Evidence from a Field Experiment. Nashville, TN: American Economic Association [publisher], 2019. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113651V1
Project Description
Summary:
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This paper provides experimental evidence on the effect of increased competition on prices and quality in the retail sector. We randomized the entry of 61 firms into 72 markets serving the beneficiaries of a conditional cash transfer program in the Dominican Republic. Six months after the intervention entry into the market led to reductions in prices ranging from 2 to 6 percent and to a statistically significant improvement in self-reported service quality. Prices dropped more in areas where the number of entrants was larger. Competition seems to have driven part of the clientele away from incumbent retailers.
Scope of Project
JEL Classification:
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C93 Field Experiments
I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
L11 Production, Pricing, and Market Structure; Size Distribution of Firms
L15 Information and Product Quality; Standardization and Compatibility
L81 Retail and Wholesale Trade; e-Commerce
O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
C93 Field Experiments
I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
L11 Production, Pricing, and Market Structure; Size Distribution of Firms
L15 Information and Product Quality; Standardization and Compatibility
L81 Retail and Wholesale Trade; e-Commerce
O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
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