Demand Agglomeration Economies and Firm Heterogeneity:Bankruptcy of HHGregg retailer

Sharma, S and Chung, W and Cho, S (2018) Demand Agglomeration Economies and Firm Heterogeneity:Bankruptcy of HHGregg retailer. Academy of Management Proceedings, 2018 (1).

Full text not available from this repository. (Request a copy)

Abstract

Agglomeration economies can provide strategic benefits for collocated firms. Modeling these benefits using a simple two firm framework, Shaver and Flyer (2000) develop a key insight: some firms contribute more than they benefit. We extend the inquiry by considering multiple firms. We build a simulation model composed of multiple, collocated, heterogeneous firms and calculate firm-specific agglomeration benefits using Shaver and Flyer’s two-firm relationship as a building block. We then simulate the exit of one firm, to assess the loss others experience, which generates simulation based predictions. We test our predictions using the bankruptcy of the HHGregg electronics retail chain and the closing of all their stores in May 2017 as a natural experiment. We examine survival of neighboring stores in HHGregg occupied and control malls, and find that other stores’ survival decreases significantly in HHGregg malls.

Affiliation: Indian School of Business
ISB Creators:
ISB CreatorsORCiD
Sharma, SUNSPECIFIED
Item Type: Article
Uncontrolled Keywords: Agglomeration Economies, Bankruptcy
Subjects: Business and Management
Economics
Depositing User: Veeramani R
Date Deposited: 24 Jul 2018 08:58
Last Modified: 24 Jul 2018 08:58
URI: http://eprints.exchange.isb.edu/id/eprint/571
Publisher URL: https://doi.org/10.5465/AMBPP.2018.54
Publisher OA policy: http://www.sherpa.ac.uk/romeo/issn/0065-0668/
Related URLs:

Actions (login required)

View Item View Item
Statistics for DESI ePrint 571 Statistics for this ePrint Item