Hypermarket Competition and the Diffusion of Retail Checkout Barcode Scanning

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in November 2005Abstract This paper presents a set of panel data to study the diffusion of retail checkout barcode scanning in ten European countries over the period [1981][1982][1983][1984][1985][1986][1987][1988][1989][1990][1991][1992][1993][1994][1995][1996]. Estimates from a standard diffusion model suggest that countries differ most in the long-run diffusion level of barcode scanning and less in timing or diffusion speed. We present evidence that the emergence of hypermarkets raises competitive intensity and use hypermarket data, among other variables, in a pooled estimation. Results suggest that hypermarket competition reduces long-run adoption of information technology (IT) in retailing. In particular, the emergence of hypermarkets seems to deepen retail segmentation by inducing potential adopters (e.g. supermarkets) to exit the market and/or by discouraging adoption by other retail formats. Consistent with expectations, scale and income effects spur IT diffusion and there is a classic substitution effect: when wages rise, diffusion of a labor-saving technology such as barcode scanning is more intense. We do not find a significant impact of employment protection legislation. JEL classification: L5, L81, O33.

Usage and diffusion of cellular telephony, 1998–2004

“…we are capturing the linear part in the middle of the diffusion curve for these countries. 13 Beck et al (2005) Our regression estimates fit the actual diffusion curve reasonably well. We do not report the obtained high R 2 in Table 3, as they are common in such non-linear models and do not necessarily indicate a good specification (Trajtenberg and Yitzhaki, 1989).…”

Estimating Level Effects in Diffusion of a New Technology: Barcode Scanning at the Checkout Counter

“…In our working paper (Beck, Grajek and Wey, 2005), we present precursory evidence supporting this view. Namely, the appearance of hypermarkets seems to lead to increased market exit rates of other retail outlets.…”

“…Many smaller retailers now work with hand-held or mobile barcode scanners, figures on which are not included in our dataset. In our working paper (Beck, Grajek and Wey, 2005), we argue in more detail that -since it is restricted to checkout bar- (1989,1990).…”

“…Another potential source of error are the implicit assumptions in our method to construct time series for the total number of retail outlets (see the data appendix in Beck, Grajek and Wey, 2005). We therefore estimated specifications I to III with a country's population (in millions) replacing the number of outlets in equation 2.…”

Estimating level effects in diffusion of a new technology: barcode scanning at the checkout counter

“…Only for specification I, which includes the special case of Germany, some results differ (reported in Beck, Grajek and Wey, 2005).…”