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.

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