Review of Industrial Organization 22: 251, 2003.
© 2003 Kluwer Academic Publishers. Printed in the Netherlands.
The Review of Industrial Organization is honored to publish this paper by the
late Peter Pashigian. It was originally co-authored with Jeanne-Mey Sun and
subsequently with Sam Peltzman. Sam Peltzman’s remarks and explanation follow.
Peter Pashigian died on October 18, 2000. He joined the faculty of the University
of Chicago’s Graduate School of Business in 1961 and spent his entire academic
career there. Peter’s work covered many topics within industrial organization, such
as the market for lawyers, the effects of municipal ownership of local transit and
the political economy of environmental regulation. However, he had an enduring
interest in the organization of retailing. That interest began with his prize-winning
dissertation on the distribution of automobiles and ends with this paper on how the
value of shopper time affects the management of supermarkets.
Peter began work on this paper in the late 1990s with Jeanne-Mey Sun, who was
then a graduate student in the Economics Department at the University of Chicago.
Upon his death I inherited a draft of the paper and the underlying database. The
draft had many rough edges. However, it contained the basic idea that supermarkets
would substitute in-store labor for shopper time when the opportunity cost of the
latter rose and some promising empirical results.
In revising the paper I collected no new data, and I have tried to retain as much
of Peter’s words and ideas as possible. However, I did extensively re-analyze the
data, and most of the results shown in the paper have been affected by this, to
varying degrees. Accordingly, considerable rewriting of the text was necessary.
Nevertheless, Peter’s insight about retailer response to the value of shopper time
remains the central theme. I hope I have been able to convey that insight to the
reader in this revision.
Peter was a valued colleague of mine for over 25 years, and contributed much to
our common ﬁeld of industrial organization. I am profoundly honored to be listed
as his co-author, and I want to thank the editor for suggesting this and Jeanne-Mey
Sun and Mrs. Rose Pashigian for giving their permission for this.