Demand Complementarities, Household Production, and Retail Assortments
Roger R. Betancourt and David A. Gautschi
,
2
(
9
)
Marketing Science
146-161
May
1990
Abstract
This paper presents a formal model of retail demand, based upon a household production framework, that permits rigorous analysis of retail assortments. The model captures the essential shifting of distribution costs between retailers and consumers that manifests itself in retailers' provision of distribution services for consumers.