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It evaluates how spatial reallocation by rival stores changes the net impact of dollar store entries and clarifies how grocery retailers respond through relocation or entry into higher-income, lower-density areas.",{"@graph":14,"@context":72},[15,34,55],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/template/","Template",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/template/general/","General",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/template/dynamic-entry-spatial-competition-an-application-to-dollar-store-expansion/305900/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/dynamic-entry-spatial-competition-an-application-to-dollar-store-expansion/305900.png","ImageObject",442,249,{"name":42,"@type":43},"8796093062539","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-09-20","2026-09-19",true,{"@type":52,"interactionType":53,"userInteractionCount":22},"InteractionCounter",{"@type":54},"ViewAction",{"@type":56,"mainEntity":57},"FAQPage",[58,64,68],{"name":59,"@type":60,"acceptedAnswer":61},"What is the core idea behind the proposed model?","Question",{"text":62,"@type":63},"The model incorporates spatial differentiation into a dynamic oligopoly game, letting multi-store and single-store retailers respond strategically through location choices.","Answer",{"name":65,"@type":60,"acceptedAnswer":66},"How is the model estimated?",{"text":67,"@type":63},"The paper proposes a tractable estimation strategy based on the ECCP estimator of Kalouptsidi et al. (2020), adapted to games.",{"name":69,"@type":60,"acceptedAnswer":70},"Why is accounting for rival stores’ spatial reallocation important?",{"text":71,"@type":63},"Including how rivals reallocate their locations is crucial to quantify the net impact of dollar store expansion on overall spatial market structure.","https://schema.org",{"og:url":32,"og:type":74,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":76,"canonical":32},"index,follow",{"doc_id":78,"site_id":7},305900,1789830148,{"code":4,"msg":81,"data":82},"success",[83,88,93,98,103,108,113,118,123],{"id":84,"doc_module":22,"doc_module_name":25,"category_name":85,"show_sort_weight":86,"slug":87},11,"Presentations",90,"presentations",{"id":89,"doc_module":22,"doc_module_name":25,"category_name":90,"show_sort_weight":91,"slug":92},12,"Resumes",80,"resumes",{"id":94,"doc_module":22,"doc_module_name":25,"category_name":95,"show_sort_weight":96,"slug":97},14,"Invoices",70,"invoices",{"id":99,"doc_module":22,"doc_module_name":25,"category_name":100,"show_sort_weight":101,"slug":102},15,"Posters",60,"posters",{"id":104,"doc_module":22,"doc_module_name":25,"category_name":105,"show_sort_weight":106,"slug":107},16,"Social Media",50,"social-media",{"id":109,"doc_module":22,"doc_module_name":25,"category_name":110,"show_sort_weight":111,"slug":112},17,"Forms",40,"forms",{"id":114,"doc_module":22,"doc_module_name":25,"category_name":115,"show_sort_weight":116,"slug":117},18,"Letters",30,"letters",{"id":119,"doc_module":22,"doc_module_name":25,"category_name":120,"show_sort_weight":121,"slug":122},21,"Paper Templates",5,"papers-templates",{"id":124,"doc_module":22,"doc_module_name":25,"category_name":29,"show_sort_weight":4,"slug":125},158,"general-158",{"code":4,"msg":81,"data":127},{"doc_id":78,"user_id":128,"nickname":42,"user_avatar":11,"doc_module":22,"category_id":124,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":129,"file_id":130,"file_url":131,"file_type":132,"file_size":133,"view_count":22,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":134,"language":135,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":136,"faqs":137,"seo_title":138,"seo_description":12,"update_tm":79,"read_time":139},8796093062539,"Dynamic Entry & Spatial Competition: An Application to Dollar Store Expansion  \nEl Hadi Caoui  \nU of Toronto  \nBrett Hollenbeck  \nUCLA Anderson  \nMatthew Osborne  \nU of Toronto  \nJune 21, 2024∗  \nAbstract  \nWe incorporate spatial differentiation into a dynamic oligopoly game played by multi-store and single-store retailers. We propose a tractable estimation strategy based on the ECCP estimator of Kalouptsidi et al. (2020), adapted to games. The model is used to study dollar store chains’ expansion in the US since 2008 and its impact on spatial market structure. We show that accounting for rival stores’ spatial reallocation is crucial to quantify the net impact of dollar stores. Grocery stores differentiate from dollar stores by strategically relocating or entering new locations with higher income and lower population density.  \nKeywords: retail competition, spatial differentiation, dollar store, dynamic games  \nJEL Classification: L13, D43, L51  \n∗ Caoui: elhadi.caoui@rotman.utoronto.ca. Hollenbeck: [brett.hollenbeck@anderson.ucla.edu](brett.hollenbeck@anderson.ucla.edu. Osborne:)[. Osborne:](brett.hollenbeck@anderson.ucla.edu. Osborne:)[ ](brett.hollenbeck@anderson.ucla.edu. Osborne:)[matthew.osborne@rotman.utoronto.ca](matthew.osborne@rotman.utoronto.ca. Portions)[. Portions](matthew.osborne@rotman.utoronto.ca. Portions) of this article were previously included in an earlier draft titled “The Impact of Dollar Store Expansion on Local Market Structure and Food Access.” We are grateful to Emek Basker, Paul Ellickson, and Mathieu Marcoux for helpful discussions of this article. We thank Victor Aguirregabiria, Hunt Allcott, JP Dub´e, Limin Fang, Paul Grieco, Sylvia Hristakeva, Yao Luo, Paul Scott, Chuck Weinberg and seminar and conference participants at the University of Toronto, UCLA, Rochester, UVA, Yale, JHU, UT Austin, U of Melbourne, Washington University of Saint Louis, University of Iowa, Stanford GSB, Chicago Booth, BLS, IIOC, SICS, CEA, ISMS Marketing Science Conference, ET Symposium, and the Food Access at Dollar Stores (FADS) Workshop for their helpful comments and suggestions.  \n1 Introduction  \nFor many decades, new retail formats have emerged and reshaped the US retail sector. The most recent development in this ongoing evolution is the dramatic rise of dollar store chains. What distinguishes this expansion is not only the speed of their growth—with the top three chains, Dollar General, Dollar Tree, and Family Dollar, collectively opening stores at a rate of 3 .75 stores per day over the past decade—but also their ubiquity. By 2021, over 75% of the US population lives within five miles of a dollar store, underscoring the extensive footprint and market penetration of these retailers.  \nOriginating in the 1950s, these chains initially targeted small towns and rural areas. Their growth accelerated following the 2008 recession as worsening household finances increased the demand for low-priced, small-format items. Notable subsequent developments include the 2007 acquisition of Dollar General by a private equity firm, which enhanced logistics and growth, and the 2015 merger of Dollar Tree and Family Dollar to compete more effectively with Dollar General. The format’s expansion has been rapid; from 2018 to 2021, dollar stores constituted about half of all new US retail openings, significantly outpacing the combined stores of Walmart, CVS, Walgreens, and Target.  \nThe expansion of dollar store chains has come under increasing scrutiny from policymakers, particularly concerning their impact on retail markets. Concerns center on whether the rapid proliferation of these stores displaces existing retailers or deters new competitors, thereby limiting the variety of goods available to consumers. This issue is especially critical in areas where the entry of dollar stores leads to the closure of local grocery outlets, impacting access to perishable foods. In response, many municipalities have enacted regulations to curb the entr","cbCaiif4uPhVrISw","https://ap.wps.com/l/cbCaiif4uPhVrISw","pdf",1104033,64,"English","# Abstract\n# 1 Introduction\n## Spatial competition and equilibrium relocation\n## Dynamic nature of expansion and cost changes\n## Modeling entry, exit, and location choice","[{\"question\":\"What is the core idea behind the proposed model?\",\"answer\":\"The model incorporates spatial differentiation into a dynamic oligopoly game, letting multi-store and single-store retailers respond strategically through location choices.\"},{\"question\":\"How is the model estimated?\",\"answer\":\"The paper proposes a tractable estimation strategy based on the ECCP estimator of Kalouptsidi et al. (2020), adapted to games.\"},{\"question\":\"Why is accounting for rival stores’ spatial reallocation important?\",\"answer\":\"Including how rivals reallocate their locations is crucial to quantify the net impact of dollar store expansion on overall spatial market structure.\"}]","Dynamic Entry & Spatial Competition: An Application to Dollar Store Expansion | PDF",22]