An agent-based model of price flexing by chain-store retailers
| Authors | |
|---|---|
| Year of publication | 2012 |
| Type | Article in Proceedings |
| Conference | Proceedings of the 30th International Conference Mathematical Methods in Economics 2012 |
| MU Faculty or unit | |
| Citation | |
| Web | http://mme2012.opf.slu.cz/proceedings/pdf/079_Krcal.pdf |
| Field | Economy |
| Keywords | retail supermarket price flexing agent-based local uniform |
| Description | The goal of this paper is to explain the differences in prices of beer in the hospitality sector in Europe. Using cross-section data for 27 European countries, the paper finds that a rise in labor costs and a reduction in on-trade per capita consumption and number of beers served per employee in the hospitality sector increases the price of beer and the value added in the hospitality sector. Moreover, these variables explain a large proportion of the variance in prices and the value added in the European data. The empirical results are consistent with the predictions of an extension of the Salop circular city model, which is used as a model of beer consumption in the hospitality sector. |