This paper examines the effect of cross-border shopping on grocery demand in Norway using monthly store × category sales data from Norway’s largest grocery chain 2012–2016. The sensitivity of demand to the foreign price is hump-shaped and greatest 30–60 minutes’ driving distance from the closest foreign store. Combining continuous demand, fixed costs of cross-border shopping, and linear transport costs a la Hotelling, we show how this hump shape can arise through a combination of intensive and extensive margins of cross-border shopping. Our conclusions are further supported by novel survey evidence and cross-border traffic data. (JEL D12, F31, L11, L81)

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This chapter summarizes our perspectives on the Norwegian grocery market, and why we have challenged scientific authors to contribute to the present book. Generally, we argue that much of the Norwegian public debate about the functioning of the food supply chain, concentration, market power and the potential competition remedies suggested, is taking place more 'despite of' than 'because of' empirical knowledge. The first part of this chapter summarizes the five primarily empirical articles of this book, drawing the bigger picture on the Norwegian grocery market. These contributions cover questions like: How do the Norwegian market structure and prices compare to other countries' market struc ture and prices? How has productivity developed over time? How are the Norwegian import restrictions functioning, and how do consumers think about national brands? Given this overview, we discuss potential remedies that might increase efficiency in this market. This discussion is mirroring parts of the sixth article in this book, where the Norwegian competition law and the negotiations in the vertical chain are discussed in more detail.

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