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Rhodes, Andrew
, Watanabe, Makoto and Zhou, Jidong
(2017)
Multiproduct Intermediaries.
TSE Working Paper, n. 17-857, Toulouse
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Abstract
This paper develops a new framework for studying multiproduct intermediaries when consumers demand multiple products and face search frictions. We show that a multiproduct intermediary is proÖtable even when it does not improve consumer search e¢ ciency. In its optimal product selection, it stocks high-value products exclusively to attract consumers to visit, then proÖts by selling non-exclusive products which are relatively cheap to buy from upstream suppliers. However, relative to the social optimum, the intermediary tends to be too big and stock too many products exclusively. As applications we use the framework to study the optimal design of a shopping mall, and the impact of direct-to-consumer sales by upstream suppliers on the retail market.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | October 2017 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | intermediaries, product range, multiproduct demand, search, direct-to-consumer sales, product range, exclusivity |
| JEL Classification: | D83 - Search; Learning; Information and Knowledge; Communication; Belief L42 - Vertical Restraints; Resale Price Maintenance; Quantity Discounts L81 - Retail and Wholesale Trade; Warehousing; e-Commerce |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse 1 Capitole |
| Site: | UT1 |
| Date Deposited: | 17 Apr 2018 07:50 |
| Last Modified: | 23 Jul 2021 12:44 |
| OAI Identifier: | oai:tse-fr.eu:32174 |
| URI: | https://publications.ut-capitole.fr/id/eprint/25736 |
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