Online Location, Online
October 21, 2022, 01:00 PM to 03:00 PM
I explore the extent to which changes in demand between 1867 and 1870 affect entry and exit of Southern general stores, using changes in Black population as a proxy for shifts in demand. If general stores are monopolies, changes in demand should have little impact on entry and exit of general stores. If general stores are competitive, increases in demand should increase entry and decrease exit of general stores. I find that changes in Black population had no significant impact on entry and exit of general stores. While this could be consistent with a monopolistic environment, I also find that changes in Black population had no significant effect on firms overall, suggesting that industrial organization of general stores was not unique. The failure of changes in demand to affect entry and exit of general stores and firms overall suggests that other post war factors had greater influence over the business environment.