IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v9y1990i2p146-161.html
   My bibliography  Save this article

Demand Complementarities, Household Production, and Retail Assortments

Author

Listed:
  • Roger Betancourt

    (University of Maryland)

  • David Gautschi

    (INSEAD)

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. We apply the model to define rigorously conventional retailing concepts, such as assortment breadth and depth, and to explain the appearance of certain well-known phenomena such as market-basket pricing, nonprice retail competition, and the incentives for retail agglomerations to form. Throughout, distribution services play a critical role in binding together the analytical model and the diverse reality giving rise to retail assortments.

Suggested Citation

  • Roger Betancourt & David Gautschi, 1990. "Demand Complementarities, Household Production, and Retail Assortments," Marketing Science, INFORMS, vol. 9(2), pages 146-161.
  • Handle: RePEc:inm:ormksc:v:9:y:1990:i:2:p:146-161
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mksc.9.2.146
    Download Restriction: no

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:9:y:1990:i:2:p:146-161. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc) The email address of this maintainer does not seem to be valid anymore. Please ask Mirko Janc to update the entry or send us the correct email address. General contact details of provider: http://edirc.repec.org/data/inforea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.