http://repub.eur.nl/res/aut/12177/ List of Publications en http://repub.eur.nl/static-eur/img/logo.png http://repub.eur.nl http://repub.eur.nl/res/pub/15930/ 1998-11-01T00:00:00Z The use of disequilibrium models in applied microeconomic research is evaluated. A disequilibrium or switching regime model is used to explain sales levels of individual retail stores. It is investigated whether substantial differences are found if an equilibrium approach is followed instead. Disequilibrium models are known to suffer from the fact that sample separation is unknown. Usually this information is not available. Our sample contains explicit information with respect to the regime to which an observation belongs. Therefore, the value of sample separation information in estimating the disequilibrium model is investigated. Finally, Monte Carlo experiments are conducted to get more insight into these matters. http://repub.eur.nl/res/pub/9594/ 1990-03-01T00:00:00Z In this paper a quantitative model is developed to explain differences in average store price levels. We assume that stores may operate under different economic regimes, that is, under excess capacity or excess demand. Prices are expected to be higher than average in case of an excess demand regime and lower in an excess capacity situation. Actual information regarding the regime that applies to each individual store is not available. Therefore, we propose to use a so-called 'switching model' with endogenous regime choice to analyse the store price differences. The model developed m the paper is estimated using four largely differing types of stores from the Durch retail trade. These samples consist mainly of small stores. http://repub.eur.nl/res/pub/9587/ 1988-01-01T00:00:00Z This study deals with the measurement of the effects of retail marketing instruments on annual sales in retail stores. We assume that the sales level in retail stores is determined by an interplay of supply capacity and demand factors. In some stores sales are supply-determined, whereas in other stores sales are demand-determined. If it is not known a priori what economic regime applies, the more traditional approaches lead to biased estimation results. Therefore, a switching regression model is proposed to estimate the marketing mix effects. Our ideas are tested using data from four different types of stores in the Dutch retail trade and a comparison is made with a more traditional approach. The main conclusions are: the traditional approach leads to underestimation of the marketing mix effects. A switching regression model seems to be a promising instrument for analyzing these effects. The method has a wider applicability than the retail trade. http://repub.eur.nl/res/pub/9582/ 1986-01-01T00:00:00Z This research note deals with a quantitative analysis of differences in percentage gross margin between individual stores in the retail trade. A number of hypotheses on pricing behavior of storekeepers are tested using Dutch survey data from nine different types of retail stores. We define percentage gross margin as a percentage mark-up on costs and make a distinction between out-of-pocket and remaining costs. It appears that the remaining costs are not always passed on completely into the percentage gross margin. This result can be explained in two ways: competition is possibly so heavy that storekeepers are not always in a position to pass on completely their remaining costs, or storekeepers are not very careful about passing on this type of cost to customers. Another finding is that percentage gross margin is inversely related to sales size due to the fact that a higher sales size requires a lower percentage of sales to achieve a given basic reward for storekeepers' labor. Percentage gross margin is of course affected by the competitive strength of a store. This influence is approximated by a store's sales.