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# Multi-Product Competition , Shopping Costs , and Market Power : A Model of Supermarket Pricing ∗

@inproceedings{Smith2015MultiProductC, title={Multi-Product Competition , Shopping Costs , and Market Power : A Model of Supermarket Pricing ∗}, author={Howard Smith and \Oyvind Thomassen}, year={2015} }

- Published 2015

A supermarket brings together product cateogories (e.g. bread, meat) that traditionally are sold separately in specialist stores on a street (e.g. baker, butcher). This paper measures the pricing incentives of large supermarkets by considering the role of multistore shopping, shopping costs, and pricing cross-effects between product categories. We estimate a discrete/continuous model in which consumers have demands for multiple categories and can buy from more than one store (incurring shopping… CONTINUE READING