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• W2990369510 abstract "We empirically examine the role of shopping costs in consumer shopping behavior in a context of competing differentiated supermarkets that supply similar product lines. We develop and estimate a model of demand in which consumers can purchase multiple products from multiple stores in the same week, and incur transaction costs of dealing with supermarkets. We show that a similar model without shopping costs predicts a larger proportion of multistop shoppers and overestimates own-price elasticities and product markups. Further, we use our model along with a model of competition between supermarkets to study two practices that are commonly used by supermarkets: product delisting and loss-leader pricing. We show that the presence of shopping costs makes product delisting less profitable whereas it makes loss-leader pricing more profitable compared to a context in which consumers do not incur shopping costs." @default.
• W2990369510 created "2019-12-05" @default.
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• W2990369510 date "2020-01-01" @default.
• W2990369510 modified "2023-10-16" @default.
• W2990369510 title "Multiproduct retailing and consumer shopping behavior: The role of shopping costs" @default.
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• W2990369510 doi "https://doi.org/10.1016/j.ijindorg.2019.102560" @default.
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