1932

Abstract

The adoption of barcode scanning technology in the 1970s gave rise to a new form of data: scanner data. Soon afterwards, researchers began using this new resource, and since then a large number of papers have exploited scanner data. The data provide detailed price, quantity, and product characteristic information for completely disaggregate products at high frequency, and they typically track a panel of stores and/or consumers. Their availability has led to advances, inter alia, in the study of consumer demand, the measurement of market power, firms’ strategic interactions and decision making, the evaluation of policy reforms, and the measurement of price dispersion and inflation. In this article we highlight some of the pros and cons of this data source, and we discuss some of the ways its availability to researchers has transformed the economics literature.

Loading

Article metrics loading...

/content/journals/10.1146/annurev-economics-051520-024949
2022-08-12
2024-06-13
Loading full text...

Full text loading...

/deliver/fulltext/economics/14/1/annurev-economics-051520-024949.html?itemId=/content/journals/10.1146/annurev-economics-051520-024949&mimeType=html&fmt=ahah

Literature Cited

  1. Aguiar M, Hurst E. 2007. Life-cycle prices and production. Am. Econ. Rev. 97:51533–59
    [Google Scholar]
  2. Aguirregabiria V. 1999. The dynamics of markups and inventories in retailing firms. Rev. Econ. Stud. 66:2275–308
    [Google Scholar]
  3. Allcott H, Diamond R, Dube JP, Handbury J, Rahkovsky I, Schnell M. 2019a. Food deserts and the causes of nutritional inequality. Q. J. Econ. 134:41793–844
    [Google Scholar]
  4. Allcott H, Lockwood BB, Taubinsky D. 2019. Regressive sin taxes, with an application to the optimal soda tax. Q. J. Econ. 134:31557–626
    [Google Scholar]
  5. Backus M, Conlon C, Sinkinson M. 2021. Common ownership and competition in the ready-to-eat cereal industry NBER Work. Pap. 28350
    [Google Scholar]
  6. Bagwell K 2007. The economic analysis of advertising. Handbook of Industrial Organization, Vol. 3 M Armstrong, R Porter 1701–844 Amsterdam: North-Holland
    [Google Scholar]
  7. Beck GW, Jaravel X. 2020. Prices and global inequality: new evidence from worldwide scanner data Work. Pap. Siegen Univ. Siegen, Ger.:
    [Google Scholar]
  8. Berry S, Haile P. 2014. Identification in differentiated products markets using market level data. Econometrica 82:51749–97
    [Google Scholar]
  9. Berry S, Haile P. 2016. Identification in differentiated products markets. Annu. Rev. Econ. 8:27–52
    [Google Scholar]
  10. Berry S, Haile P. 2020. Nonparametric identification of differentiated products demand using micro data NBER Work. Pap. 27704
    [Google Scholar]
  11. Berry S, Levinsohn J, Pakes A. 1995. Automobile prices in market equilibrium. Econometrica 63:4841–90
    [Google Scholar]
  12. Bitler M, Haider SJ. 2011. An economic view of food deserts in the United States. J. Policy Anal. Manag. 30:1153–76
    [Google Scholar]
  13. Bonnet C, Dubois P. 2010. Inference on vertical contracts between manufacturers and retailers allowing for nonlinear pricing and resale price maintenance. RAND J. Econ. 41:1139–64
    [Google Scholar]
  14. Bresnahan TF. 1981. Departures from marginal-cost pricing in the American automobile industry. J. Econom. 17:2201–27
    [Google Scholar]
  15. Bresnahan TF. 1987. Competition and collusion in the American automobile industry: the 1955 price war. J. Ind. Econ. 35:4457–82
    [Google Scholar]
  16. Briesch R, Chintagunta P, Matzkin R. 2010. Nonparametric discrete choice models with unobserved heterogeneity. J. Bus. Econ. Stat. 28:291–307
    [Google Scholar]
  17. Bronnenberg BJ, Dhar SK, Dubé JPH. 2009. Brand history, geography, and the persistence of brand shares. J. Political Econ. 117:187–115
    [Google Scholar]
  18. Bronnenberg BJ, Dubé JP. 2017. The formation of consumer brand preferences. Annu. Rev. Econ. 9:353–82
    [Google Scholar]
  19. Bronnenberg BJ, Dubé JPH, Gentzkow M. 2012. The evolution of brand preferences: evidence from consumer migration. Am. Econ. Rev. 102:62472–508
    [Google Scholar]
  20. Browning M, Carro J 2007. Heterogeneity and microeconometrics modelling. Advances in Economics and Econometrics, Vol. 3 R Blundell, W Newey, T Persson 47–74 Cambridge, UK: Cambridge Univ. Press
    [Google Scholar]
  21. Burda M, Harding M, Hausman J. 2008. A Bayesian mixed logit-probit model for multinomial choice. J. Econom. 147:2232–46
    [Google Scholar]
  22. Butters RA, Sacks DW, Seo B. 2022. How do national firms respond to local cost shocks?. Am. Econ. Rev. 112:173772
    [Google Scholar]
  23. Chetty R, Looney A, Kroft K. 2009. Salience and taxation: theory and evidence. Am. Econ. Rev. 99:41145–77
    [Google Scholar]
  24. Coibion O, Gorodnichenko Y, Hong GH. 2015. The cyclicality of sales, regular and effective prices: business cycle and policy implications. Am. Econ. Rev. 105:3993–1029
    [Google Scholar]
  25. Cosslett S. 1983. Distribution-free maximum likelihood estimator of the binary choice model. Econometrica 51:3765–82
    [Google Scholar]
  26. Deaton A. 1986. Demand analysis. Handbook of Econometrics, Vol. 3 Z Griliches, M Intriligator 1767–839 Amsterdam: North-Holland
    [Google Scholar]
  27. DellaVigna S, Gentzkow M. 2019. Uniform pricing in US retail chains. Q. J. Econ. 134:42011–84
    [Google Scholar]
  28. Dubé JP, Hitsch GJ, Manchanda P. 2005. An empirical model of advertising dynamics. Quant. Mark. Econ. 3:107–44
    [Google Scholar]
  29. Dubois P, Griffith R, Nevo A. 2014. Do prices and attributes explain international differences in food purchases?. Am. Econ. Rev. 104:3832–67
    [Google Scholar]
  30. Dubois P, Griffith R, O'Connell M. 2018. The effects of banning advertising in junk food markets. Rev. Econ. Stud. 1:1396–436
    [Google Scholar]
  31. Dubois P, Griffith R, O'Connell M. 2020. How well targeted are soda taxes?. Am. Econ. Rev. 110:113661–704
    [Google Scholar]
  32. Eichenbaum M, Jaimovich N, Rebelo S. 2011. Reference prices, costs, and nominal rigidities. Am. Econ. Rev. 101:1234–62
    [Google Scholar]
  33. Eizenberg A, Lach S, Oren-Yiftach M. 2021. Retail prices in a city. Am. Econ. J. Econ. Policy 13:2175–206
    [Google Scholar]
  34. Erdem T, Keane M, Sun B. 2008. The impact of advertising on consumer price sensitivity in experience goods markets. Quant. Mark. Econ. 6:2139–76
    [Google Scholar]
  35. Eur. Comm. Dir. Gen. Compet 2015. A review of merger decisions in the EU: What can we learn from ex post evaluations? Rep. Eur. Comm. Luxemb:.
    [Google Scholar]
  36. Fox JT, Kim K, Ryan SP, Bajari P. 2011. A simple estimator for the distribution of random coefficients. Quant. Econ. 2:3381–418
    [Google Scholar]
  37. Gelman M, Kariv S, Shapiro MD, Silverman D, Tadelis S. 2014. Harnessing naturally occurring data to measure the response of spending to income. Science 345:6193212–15
    [Google Scholar]
  38. Goldberg P, Hellerstein R. 2013. A structural approach to identifying the sources of local currency price stability. Rev. Econ. Stud. 80:1175–210
    [Google Scholar]
  39. Gorman WM. 1980. A possible procedure for analysing quality differentials in the egg market. Rev. Econ. Stud. 47:5843–56
    [Google Scholar]
  40. Greene W 2009. Discrete choice modeling. Palgrave Handbook of Econometrics: Applied Econometrics, Vol. 2 TC Mills, K Patterson 473–556 London: Palgrave Macmillan
    [Google Scholar]
  41. Griffith R, Krol M, Smith K. 2018a. Why do retailers advertise store brands differently across product categories?. J. Ind. Econ. 66:3519–69
    [Google Scholar]
  42. Griffith R, Leibtag E, Leicester A, Nevo A. 2009. Consumer shopping behavior: How much do consumers save?. J. Econ. Perspect. 23:299–120
    [Google Scholar]
  43. Griffith R, O'Connell M, Smith K. 2016. Shopping around: how households adjusted food spending over the Great Recession. Economica 83:330247–80
    [Google Scholar]
  44. Griffith R, O'Connell M, Smith K. 2019. Tax design in the alcohol market. J. Public Econ. 172:20–35
    [Google Scholar]
  45. Griffith R, von Hinke S, Smith S. 2018b. Getting a healthy start: the effectiveness of targeted benefits for improving dietary choices. J. Health Econ. 58:176–87
    [Google Scholar]
  46. Guadagni PM, Little J. 1983. A logit model of brand choice calibrated on scanner data. Mark. Sci. 2:3203–38
    [Google Scholar]
  47. Handbury J. 2021. Are poor cities cheap for everyone? Non-homotheticity and the cost of living across U.S. cities. Econometrica 89:62679–715
    [Google Scholar]
  48. Hellerstein R. 2008. Who bears the cost of a change in the exchange rate? Pass-through accounting for the case of beer. J. Int. Econ. 76:114–32
    [Google Scholar]
  49. Hendel I, Nevo A. 2006a. Measuring the implications of sales and consumer inventory behavior. Econometrica 74:61637–73
    [Google Scholar]
  50. Hendel I, Nevo A. 2006b. Sales and consumer inventory. RAND J. Econ. 37:3543–61
    [Google Scholar]
  51. Hendel I, Nevo A. 2013. Intertemporal price discrimination in storable goods markets. Am. Econ. Rev. 103:72722–51
    [Google Scholar]
  52. Holmes TJ. 2011. The diffusion of Wal-Mart and economies of density. Econometrica 79:1253–302
    [Google Scholar]
  53. Hottman C, Redding S, Weinstein D. 2016. Quantifying the sources of firm heterogeneity. Q. J. Econ. 131:31291–364
    [Google Scholar]
  54. Hoynes H, Schanzenbach DW, Almond D. 2016. Long-run impacts of childhood access to the safety net. Am. Econ. Rev. 106:4903–34
    [Google Scholar]
  55. Ichimura H, Thompson S. 1998. Maximum likelihood estimation of a binary choice model with random coefficients of unknown distribution. J. Econom. 86:2269–95
    [Google Scholar]
  56. Int. Labour Organ 2004. Consumer Price Index Manual: Theory and Practice. Geneva, Switz: Int. Labour Organ.
    [Google Scholar]
  57. Ivancic L, Fox KJ, Diewert EW. 2011. Scanner data, time aggregation and the construction of price indexes. J. Econom. 161:124–35
    [Google Scholar]
  58. Jaravel X. 2019. The unequal gains from product innovations: evidence from the U.S. retail sector. Q. J. Econ. 134:2715–83
    [Google Scholar]
  59. Jaravel X. 2021. Inflation inequality: measurement, causes, and policy implications. Annu. Rev. Econ. 13:599–629
    [Google Scholar]
  60. Jaravel X, O'Connell M. 2020. Real-time price indices: inflation spike and falling product variety during the Great Lockdown. J. Public Econ. 191:104270
    [Google Scholar]
  61. Kanetkar V, Weinberg CB, Weiss DL. 1992. Price sensitivity and television advertising exposures: some empirical findings. Mark. Sci. 11:4359–71
    [Google Scholar]
  62. Kaplan G, Menzio G, Rudanko L, Trachter N. 2019. Relative price dispersion: evidence and theory. Am. Econ. J. Microecon. 11:368–124
    [Google Scholar]
  63. Kaplan G, Schulhofer-Wohl S. 2017. Inflation at the household level. J. Monet. Econ. 91:19–38
    [Google Scholar]
  64. Lancaster K. 1966. A new approach to consumer theory. J. Political Econ. 74:2132–57
    [Google Scholar]
  65. Lewbel A. 2000. Semiparametric qualitative response model estimation with unknown heteroscedasticity or instrumental variables. J. Econom. 97:145–77
    [Google Scholar]
  66. Lewbel A, Nesheim L. 2019. Sparse demand systems: corners and complements CEMMAP Work. Pap. CWP45/19 Cent. Microdata Methods Pract. London:
    [Google Scholar]
  67. Manski CF. 1975. Maximum score estimation of the stochastic utility model of choice. J. Econom. 3:3205–28
    [Google Scholar]
  68. Manski CF. 1987. Semiparametric analysis of random effects linear models from binary panel data. Econometrica 55:2357–62
    [Google Scholar]
  69. Matzkin R. 1992. Nonparametric and distribution-free estimation of the binary threshold crossing and the binary choice models. Econometrica 60:2239–70
    [Google Scholar]
  70. Matzkin R. 1993. Nonparametric identification and estimation of polychotomous choice models. Econometrica 58:1–2137–68
    [Google Scholar]
  71. McFadden D 1974. Conditional logit analysis of qualitative choice behavior. Frontiers of Econometrics P Zarembka 105–42 New York: Academic
    [Google Scholar]
  72. McFadden D 1978. Quantitative methods for analyzing travel behaviour of individuals: some recent developments. Behavioural Travel Modelling D Hensher, P Stopher 279–318 London: Croom Helm
    [Google Scholar]
  73. McFadden D. 1980. Econometric models for probabilistic choice among products. J. Bus. 53:3S13–29
    [Google Scholar]
  74. McFadden D. 1984. Econometric analysis of qualitative response models. Handbook of Econometrics, Vol. 2 Z Griliches, M Intriligator 1395–457 Amsterdam: North-Holland
    [Google Scholar]
  75. McFadden D, Train K. 2000. Mixed MNL models for discrete response. J. Appl. Econom. 15:447–70
    [Google Scholar]
  76. Melitz MJ. 2003. The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica 71:61695–725
    [Google Scholar]
  77. Miller NH, Weinberg MC. 2017. Understanding the price effects of the MillerCoors joint venture. Econometrica 85:61763–91
    [Google Scholar]
  78. Nakamura E, Steinsson J. 2008. Five facts about prices: a reevaluation of menu cost models. Q. J. Econ. 123:41415–64
    [Google Scholar]
  79. Nakamura E, Zerom D. 2010. Accounting for incomplete pass-through. Rev. Econ. Stud. 77:31192–230
    [Google Scholar]
  80. Nevo A. 2000. Mergers with differentiated products: the case of the ready-to-eat cereal industry. RAND J. Econ. 31:3395–421
    [Google Scholar]
  81. Nevo A. 2001. Measuring market power in the ready-to-eat cereal industry. Econometrica 69:2307–42
    [Google Scholar]
  82. Nevo A. 2011. Empirical models of consumer behavior. Annu. Rev. Econ. 3:51–75
    [Google Scholar]
  83. Nevo A, Wong A. 2019. The elasticity of substitution between time and market goods: evidence from the Great Recession. Int. Econ. Rev. 60:125–51
    [Google Scholar]
  84. O'Connell M, Smith K, Stroud R. 2021. The dietary impact of the COVID-19 pandemic. IFS Work. Pap. 21/18 Inst. Fiscal Stud. London:
    [Google Scholar]
  85. Pesendorfer M. 2002. Retail sales: a study of pricing behavior in supermarkets. J. Bus. 75:133–66
    [Google Scholar]
  86. Redding SJ, Weinstein DE. 2020. Measuring aggregate price indices with taste shocks: theory and evidence for CES preferences. Q. J. Econ. 135:1503–60
    [Google Scholar]
  87. Rivers D, Vuong Q. 2002. Model selection tests for nonlinear dynamic models. Econom. J. 5:11–39
    [Google Scholar]
  88. Rosen S. 1974. Hedonic prices and implicit markets: product differentiation in pure competition. J. Political Econ. 82:134–55
    [Google Scholar]
  89. Ruiz FJR, Athey S, Blei DM. 2019. SHOPPER: a probabilistic model of consumer choice with substitutes and complements. arXiv:1711.03560 [stat.ML]
  90. Shapiro BT, Hitsch GJ, Tuchman AE. 2021. TV advertising effectiveness and profitability: generalizable results from 288 brands. Econometrica 89:41855–79
    [Google Scholar]
  91. Sudhir K. 2001. Structural analysis of manufacturer pricing in the presence of a strategic retailer. Mark. Sci. 20:3244–64
    [Google Scholar]
  92. Thomassen Ø, Smith H, Seiler S, Schiraldi P. 2017. Multi-category competition and market power: a model of supermarket pricing. Am. Econ. Rev. 107:82308–51
    [Google Scholar]
  93. Train KE. 2003. Discrete Choice Methods with Simulation Cambridge, UK: Cambridge Univ. Press
    [Google Scholar]
  94. US Dep. Justice, Fed. Trade Comm 2006. Commentary on the horizontal merger guidelines Tech. Rep. US Dep. Justice, Fed. Trade Comm. Washington, DC:
    [Google Scholar]
  95. Villas-Boas SB. 2007. Vertical relationships between manufacturers and retailers: inference with limited data. Rev. Econ. Stud. 74:2625–52
    [Google Scholar]
  96. Vuong QH. 1989. Likelihood ratio tests for model selection and non-nested hypotheses. Econometrica 57:2307–33
    [Google Scholar]
  97. Wang EXR. 2013. Economic tools for evaluating competitive harm in horizontal mergers. Note, Charles River Assoc. Boston, MA:
    [Google Scholar]
  98. Wang EY. 2015. The impact of soda taxes on consumer welfare: implications of storability and taste heterogeneity. RAND J. Econ. 46:2409–41
    [Google Scholar]
/content/journals/10.1146/annurev-economics-051520-024949
Loading
/content/journals/10.1146/annurev-economics-051520-024949
Loading

Data & Media loading...

  • Article Type: Review Article
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error