Events

Dr. Limin Fang
Assistant Professor of Strategy and Business Economics
Sauder School of Business
University of British Columbia

We investigate the impact that uniform “one-size-fits-all” tax policies have on shaping
the retail landscape. An entry model demonstrates that tax effects on retailer entry
can amplify market concentration. Using comprehensive data about all retail establishments
in the United States from 1990 to 2014, we show that while they are more
likely to open in markets with favorable state tax policies, these markets become more
concentrated as entry is dominated by the largest chains. Therefore, tax policies might
impact the retail industry competitiveness, despite the policies’ uniform design.