Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/102158 
Year of Publication: 
2014
Series/Report no.: 
CESifo Working Paper No. 4940
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We examine the relationship between the prices paid by households and their shopping patterns measured in terms of shopping frequency and the range of stores visited. We use the TNS data which allows us to control for household heterogeneity. The main contribution of the paper is that we find proper instruments to correct for endogeneity of shopping patterns. And we find that there exists a robust positive relationship between the price paid and the number of store visited. We argue that visiting larger number of stores makes households less likely to save using store-loyalty discounts.
Subjects: 
shopping frequency
price
store loyalty
demographics
JEL: 
D03
D12
D83
M31
Document Type: 
Working Paper
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