% ============================================================================ % UQO Working Paper Template — Economics / Finance % ============================================================================ \documentclass[12pt,letterpaper]{article} % --- Encoding & Language --- \usepackage[utf8]{inputenc} \usepackage[T1]{fontenc} \usepackage[english]{babel} % --- Page Layout --- \usepackage[ letterpaper, top=1in, bottom=1in, left=1in, right=1in ]{geometry} % --- Typography --- \usepackage{mathptmx} % Times-like font (text + math) \usepackage{microtype} % Improved typographic refinements \usepackage{setspace} \onehalfspacing % 1.5 line spacing % --- Math --- \usepackage{amsmath,amssymb,amsthm} % --- Tables --- \usepackage{booktabs} \usepackage{tabularx} \usepackage{multirow} \usepackage{threeparttable} \usepackage{siunitx} \sisetup{ input-symbols = {()}, table-format = -1.3, parse-numbers = false } % --- Figures --- \usepackage{graphicx} \usepackage{subcaption} \usepackage{float} \usepackage{adjustbox} % --- Colors & Links --- \usepackage[dvipsnames]{xcolor} \usepackage[ colorlinks = true, linkcolor = NavyBlue, citecolor = NavyBlue, urlcolor = NavyBlue, breaklinks = true ]{hyperref} % --- Bibliography --- \usepackage[authoryear,round,semicolon]{natbib} \bibliographystyle{aer} % --- Captions --- \usepackage[ font = small, labelfont = bf, labelsep = period, justification = justified, singlelinecheck = false ]{caption} % --- Headers & Footers --- \usepackage{fancyhdr} \pagestyle{fancy} \fancyhf{} \renewcommand{\headrulewidth}{0pt} \fancyfoot[C]{\thepage} % --- Section Formatting --- \usepackage{titlesec} \titleformat{\section}{\large\bfseries}{\thesection.}{0.5em}{} \titleformat{\subsection}{\normalsize\bfseries}{\thesubsection.}{0.5em}{} \titleformat{\subsubsection}{\normalsize\itshape}{\thesubsubsection.}{0.5em}{} % --- Appendix Support --- \usepackage[toc,page]{appendix} % --- Misc --- \usepackage{enumitem} \setlist{nosep,leftmargin=*} % ============================================================================ % METADATA — Edit these fields for each working paper % ============================================================================ \newcommand{\WPnumber}{37} \newcommand{\WPtitle}{The Hidden Architecture of Grocery Prices: Promotions, Retail Competition, and the Cost of Living in Quebec} \newcommand{\WPsubtitle}{Evidence from 300{,}613 posted-price events across 54 Quebec grocery feeds, August--November 2026} \newcommand{\WPdate}{November 2026} \newcommand{\WPversion}{1.0} \newcommand{\WPabstract}{% Grocery prices are not a single inflation process. Using a read-only research copy of Food-Ka, a Quebec grocery price aggregator, we assemble an auditable panel of 124{,}579 listings from 54 active source feeds (26 retail companies, two channels: online storefronts and weekly circulars) observed every seven hours between 12 August and 1 November 2026 (300{,}613 logged price events, 723{,}140 listing-weeks). We first document a measurement finding relevant to any study of scraped prices: storefronts that serve store-specific prices to anonymous sessions produce intra-day oscillation among three to five price levels, so sub-weekly ``volatility'' in such feeds is a mixture over unidentified stores, not repricing. A calibrated matching procedure (exact UPC within Metro Inc.; brand, package and token-identical names elsewhere; precision 0.91 and recall 0.98 on 4{,}413 UPC-identified pairs, plus a 240-pair reviewed sample) yields 5{,}909 cross-banner groups. On identical products in the same week, the median max--min log price gap across banners is 0.154 (79\% of group-weeks exceed 5\%), banner-pair gaps are persistent (AR(1) 0.66 against a 0.00 permutation placebo), and banner fixed effects range from $-0.20$ (Walmart, Giant Tiger, Maxi) to $+0.12$ (specialty shops) relative to Metro. Inferred promotions cover 4.6\% of storefront listing-weeks with a median depth of 22\%; half of all weekly price changes are promotion entries or exits, doubling measured volatility (ratio 1.92, CI 1.84--2.02). Temporary sales return exactly to their pre-sale reference (mean change $-0.0003$ log points): no reference-price drift within the window; a pre-sale price elevation is mostly a store-mixture artefact and shrinks to about two log points in single-store shops. Lead--lag price associations between rivals are small and fail a lead placebo for cross-company pairs, so no causal response is claimed. Matched-model and naive indices agree within one point at the market level over eleven weeks, but naive averages are off by 10--30 points for banners with assortment turnover. A fixed-basket mixed-integer program shows that unconstrained cheapest-banner shopping saves 15\% relative to the best single banner, 85\% of which two banners capture; store geography and travel costs are unobserved. We publish a five-component Quebec Grocery Price and Affordability Index with uncertainty bands and a prospective collection plan, and report null and failed tests alongside positive ones.% } \newcommand{\WPkeywords}{grocery prices; price dispersion; promotions; high--low pricing; web-scraped prices; price indices; record linkage; retail competition; Quebec} \newcommand{\WPjel}{D22, D40, E31, L11, L81, C81} % --- Author --- \newcommand{\WPauthor}{Simon-Pierre Boucher} \newcommand{\WPaffiliation}{% Département des sciences administratives\\ Université du Québec en Outaouais% } \newcommand{\WPemail}{simon-pierre.boucher@uqo.ca} \newcommand{\WPaddress}{% Gatineau -- Pavillon Alexandre-Taché\\ 283, boulevard Alexandre-Taché\\ Gatineau, Québec, Canada J9A 1L8% } % ============================================================================ % DOCUMENT % ============================================================================ \begin{document} % --- Title Page --- \input{sections/titlepage} % --- Main Body --- \input{sections/introduction} \input{sections/literature} \input{sections/institutional} \input{sections/data} \input{sections/theory} \input{sections/methods} \input{sections/results} \input{sections/robustness} \input{sections/policy} \input{sections/limitations} \input{sections/conclusion} \input{sections/reproducibility} % --- References --- \newpage \bibliography{references} % --- Appendix --- \input{appendix/appendix} \end{document}