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stupidly_smart

Econ EE: monopolies, change in demand after a new competitor came in

I am still drafting ideas for my Econ EE, and I was just wondering what people think so far. I haven't got wording down yet, but this is the general idea I was thinking of:

I would look at my local grocery store (like a nationally powerful and huge one) before and after another smaller store came in mid last year. I

would look at two very similar products which would act as substitutes. I would expect that demand would go down. I would get data from their offices (secondary research) and then I would conduct

surveys about people's attitudes once the smaller store came in. I guess the main theory I would look at is monopolistic competition. But the factors that would influence demand in this case is not only the fact there is

a new competitor, but the new store's brands are generally foreign, so I would look at whether branding was an important factor. Moreover, the convenience of the new store would also be a large factor, as the bigger grocery store's location is also near other shops like bakeries, butchers, newsagencies etc.

I was also thinking about building on this idea and looking at the difference of the change in demand in my local area, and the change in

demand in another area (about a 30min drive away), as the same new store came in this year while same old store

used to be there (so its like the same situation, just different location, different people, different income etc). Do you think building on the idea would get too

big and messy? Transport to get there is fine, but do you think its getting too messy?

So I guess what i'm wondering is:

a. Any ideas to improve on what I have already?

b. Is it narrow enough, (remember I would look at one or two specific goods)

c. Any ideas of what other micro theories I would look at?

d. Any ideas for wording =P (i'm not expecting much for that one lol)

Any help would be awesome! Thank you in advance!!

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