Micro-Level Analysis of Mexican Retail Markets and Their Response to Changes in Market Structure and Competition Policies Sanchez-Bayardo, Luis Fernando Gonzalez, Alvaro Iacovone, Leonardo 2018-01-16T17:08:24Z 2018-01-16T17:08:24Z 2018-01
dc.description.abstract This paper develops the following price indicators to measure the relative efficiency (functioning) of markets: (a) price dispersion, (b) price volatility, and (c) price transmission (speed, completeness, and symmetry). The paper uses these indicators to study trends and conditions of the outlet level in retail prices for common commodities sold throughout Mexico. The analysis examines price patterns for each indicator across commodities, regions, and time. The descriptive results indicate that although there is (expected) heterogeneity in the behavior of these indicators across commodities, location variables explain the most variation in the indicators. There are clear and persistent regional- and commodity-specific effects. Thus, the study concludes that Mexico is not one, well-integrated national market. The study tested whether changes in these indicators (increased efficiency) have the expected correlation with measures affecting the functioning of markets. It considered changes in competition and entry of large retail stores in the local retail market. These changes affect market efficiency in the way theory would predict. The results suggest that these indicators are good measures of the relative efficiency (functioning) of markets. The findings also suggest that efforts to monitor markets using these indicators may be useful. For example, for policy makers who are concerned about the distributional effects of liberalizing trade, the indicators may predict where price impacts will be felt the most and by whom. In addition, the indicators provide preliminary information about relative competition levels, which may be helpful in saving the time and effort of the competition authorities and possibly making them more effective. en
dc.language English
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper;No. 8294
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.subject PRICES
dc.subject COMPETITION
dc.subject ENTRY
dc.subject INTEGRATON
dc.title Micro-Level Analysis of Mexican Retail Markets and Their Response to Changes in Market Structure and Competition Policies en
dc.type Working Paper en
dc.type Document de travail fr
dc.type Documento de trabajo es
dspace.entity.type Publication
okr.crossref.title Micro-Level Analysis of Mexican Retail Markets and Their Response to Changes in Market Structure and Competition Policies 2018-01-08
okr.doctype Publications & Research :: Policy Research Working Paper
okr.doctype Publications & Research
okr.identifier.doi 10.1596/1813-9450-8294
okr.identifier.externaldocumentum 090224b08550bf52_1_0
okr.identifier.internaldocumentum 29473545 WPS8294
okr.imported true en
okr.language.supported en
okr.pdfurl en
okr.region.administrative Latin America & Caribbean Mexico
okr.statistics.combined 1063
okr.statistics.dr 110401515422368009
okr.statistics.drstats 723
okr.topic Private Sector Development :: Competitiveness and Competition Policy
okr.topic Private Sector Development :: Emerging Markets
okr.topic Private Sector Development :: Private Sector Economics
okr.unit Jobs Cross Cutting Solution Area
relation.isAuthorOfPublication 734ee1fb-8c6d-5f35-94cf-b5d89ace0d98
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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