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A Theory of Retail Pricing

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  • Bliss, Christopher

Abstract

After surveying existing models of retailing, this paper concentrates on the idea that the shop saves its customers costs by assembling goods in one p lace. This introduces an essential nonconvexity and importantly affec ts the conditions under which shops compete with each other and the c onstraints on their price setting. Under the admittedly unrealistic a ssumption of full buyer information, a theory of retail pricing is de veloped. Copyright 1988 by Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Industrial Economics.

Volume (Year): 36 (1988)
Issue (Month): 4 (June)
Pages: 375-91

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Handle: RePEc:bla:jindec:v:36:y:1988:i:4:p:375-91

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