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Clustering or scattering: the underlying reason for regulating distance among retail outlets
Borrell, Joan-Ramon; Fernández Villadangos, Laura
Xarxa de Referència en Economia Aplicada (XREAP)
Concerns on the clustering of retail industries and professional services in main streets had traditionally been the public interest rationale for supporting distance regulations. Although many geographic restrictions have been suppressed, deregulation has hinged mostly upon the theory results on the natural tendency of outlets to differentiate spatially. Empirical evidence has so far offered mixed results. Using the case of deregulation of pharmacy establishment in a region of Spain, we empirically show how pharmacy locations scatter, and that there is not rationale for distance regulation apart from the underlying private interest of very few incumbents.
Retail stores
Retail trade
Trade regulation
33 - Economia
Establiments comercials
Comerç al detall
Regulació del comerç
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38 p.
Working Paper
Xarxa de Referència en Economia Aplicada (XREAP)

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