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

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data			10/12/2019 01:09:PM
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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: 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:
      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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Published Versions

V1 [2019-10-12]

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DDI 2.5

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