Variety and the Cost of Search in Supermarket Retailing
TLDR
This paper examined search costs and product variety among multi-product retailers and found that search costs within each store rise in product variety, suggesting that retailers reduce consumer search by offering deeper product assortments.Abstract:
We examine search costs and product variety among multi-product retailers. Search costs may rise in variety, because consumers have more alternatives to consider, but may fall on the margin as product variety allows better matches between consumers and brands. We estimate a hierarchical model that disentangles the effect of variety on brand and store search costs.
Our findings reveal that search costs within each store rise in product variety, suggesting that retailers reduce consumer search by offering deeper product assortments. But, the cost of searching among stores falls in product variety, which limits the exercise of market power.read more
Citations
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COVID-19 and the Demand for Online Food Shopping Services: Empirical Evidence from Taiwan
TL;DR: In this article, the authors investigate how the coronavirus pandemic affected the demand for online food shopping services using data from the largest agri-food e-commerce platform in Taiwan and find that an additional confirmed case of COVID-19 increased sales by 5 7% and the number of customers by 4 9%.
The Paradox of Choice : Why More is Less (Mengapa Lebih Itu Justru Kurang)
TL;DR: The Paradox of Choice as mentioned in this paper argues that too much choice can lead to clinical depression, and suggests that eliminating choices can greatly reduce stress, anxiety, and busyness of our lives.
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An Economic Model of the Evolution of Food Retail and Supply Chains from Traditional Shops to Supermarkets to E-Commerce
Liang Lu,Thomas Reardon +1 more
TL;DR: In this paper, the authors analyze the evolution of food retail by building a store choice equilibrium model and provide an illustrated discussion, and show under what conditions in equilibrium the different retail types exist and which can become dominant, and what types of goods (dry packaged foods versus perishables) are distributed by what type of retailers.
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Great Expectations?! Assortment Size, Expectations and Satisfaction
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The Robinson–Patman Act and Vertical Relationships
TL;DR: In this paper, the authors use data on wholesale and retail prices for yogurt products, and a Nash-in-Nash vertical bargaining model, to test whether the RPA represents a real constraint on bargaining between manufacturers and retailers.
References
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Journal ArticleDOI
Automobile prices in market equilibrium
TL;DR: In this article, the authors developed techniques for empirically analyzing demand and supply in differentiated products markets and then applied these techniques to analyze equilibrium in the U.S. automobile industry.
Journal ArticleDOI
When choice is demotivating: Can one desire too much of a good thing?
Sheena S. Iyengar,Mark R. Lepper +1 more
TL;DR: The authors found that people are more likely to purchase gourmet jams or chocolates or to undertake optional class essay assignments when offered a limited array of 6 choices rather than a more extensive array of 24 or 30 choices.
Journal ArticleDOI
Reducing buyer search costs: implications for electronic marketplaces
TL;DR: In this paper, the role of buyer search costs in markets with differentiated product offerings is analyzed in the context of an electronic marketplace, and the allocational efficiencies such a reduction can bring to a differentiated market are formalized.
Journal ArticleDOI
Frictionless Commerce? A Comparison of Internet and Conventional Retailers
TL;DR: The authors empirically analyzes the characteristics of the Internet as a channel for two categories of homogeneous products-books and CDs-using a data set of over 8,500 price observations collected over a period of 15 months, comparing pricing behavior at 41 Internet and conventional retail outlets.
Book
The Paradox of Choice: Why More Is Less
TL;DR: The Paradox of Choice as mentioned in this paper argues that too much choice can lead to clinical depression, and suggests that eliminating choices can greatly reduce stress, anxiety, and busyness of our lives.