Beyond Plain Vanilla: Modeling Joint Product Assortment and Pricing Decisions

Michaela Draganska, Katja Seim and Michael Mazzeo
Additional contact information
Katja Seim: Northwestern U
Michael Mazzeo: U of Pennsylvania

Research Papers from Stanford University, Graduate School of Business

Abstract: In this paper, we take a first step toward exploring empirically the product assortment strategies of oligopolistic firms. Our starting point is a discrete- choice demand model for differentiated products. We incorporate the demand model into an equilibrium supply model, in which firms compete by first choosing which products to offer and then by setting prices. We show how modeling joint product assortment and pricing decisions enriches standard product choice models by allowing insights into how demand characteristics affect firms' product offerings in a competitive environment. We furthermore demonstrate that incorporating endogenous product choice into demand models is essential for policy simulations (e.g., mergers) as it entails at times dramatically different welfare assessments than the common assumption that product assortments are exogenous.

Date: 2007-10
New Economics Papers: this item is included in nep-cmp, nep-com, nep-mic and nep-mkt
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://gsbapps.stanford.edu/researchpapers/detail1.asp?Document_ID=3031
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to gsbapps.stanford.edu:443 (certificate verify failed) (http://gsbapps.stanford.edu/researchpapers/detail1.asp?Document_ID=3031 [302 Found]--> https://gsbapps.stanford.edu/researchpapers/detail1.asp?Document_ID=3031)

Related works:
Journal Article: Beyond plain vanilla: Modeling joint product assortment and pricing decisions (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecl:stabus:1982

Access Statistics for this paper

More papers in Research Papers from Stanford University, Graduate School of Business Contact information at EDIRC.
Bibliographic data for series maintained by ().