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A Search-Theoretic Interpretation of Multi-Outlet Retailers

Citation

Prentice, D and Sibly, HA, A Search-Theoretic Interpretation of Multi-Outlet Retailers, The Economic Record, 72, (219) pp. 359-369. ISSN 0013-0249 (1996) [Refereed Article]

DOI: doi:10.1111/j.1475-4932.1996.tb00970.x

Abstract

Why do retailing firms operate several chains of stores, each of which is in apparent competition with the others? This paper demonstrates that by increasing the number of, apparently independent, stores it controls, a firm can discourage consumer search and increase its market power. It is also shown that an increased share of outlets controlled by a multi-outlet firm allows both single-outlet firms and the multi-outlet firm to raise price and thereby increase profit. These results also imply that once the traditional one-firm, one-outlet assumption is relaxed, sequential search models may become unstable.

Item Details

Item Type:Refereed Article
Research Division:Economics
Research Group:Economic Theory
Research Field:Economic Theory not elsewhere classified
Objective Division:Economic Framework
Objective Group:Microeconomics
Objective Field:Microeconomics not elsewhere classified
Author:Sibly, HA (Dr Hugh Sibly)
ID Code:8216
Year Published:1996
Web of Science® Times Cited:1
Deposited By:Economics and Finance
Deposited On:1996-08-01
Last Modified:2011-08-19
Downloads:0

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