An International Comparison of the Determinants of Retail Gross Margins

Roger R. Betancourt and David A. Gautschi, Empirica 23(2), 173-189, June .


In this paper we compare the results of applying a new economic framework for the analysis of retail gross margins to 1982 interindustry retail data for France, Germany, and the U.S. Use of the same theoretical framework and econometric methodology separately for each of the three bodies of data yields robust empirical regularities with respect to functional form and the role of distribution services in explaining retail gross margins. An interesting feature of these results is that they arise despite substantial differences in classification and in the retail environment of the three countries.

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