The Economics of Retail Firms
Roger R. Betancourt and David A. Gautschi
,
2
(
9
)
Managerial and Decision Economics
133-144
June
1988
Abstract
This paper identifies retail firms as an economic institution which delivers explicit products or services to consumer together with a variety of distribution services that determine the levels of distribution costs experienced by consumers in their purchase activities. The demand for the retailer's product is derived from a household production model in which the levels of distribution services provided by the retailer play the role of fixed inputs in the household's production functions.