Anderson, Simon P.; Foros, Øystein; Kind, Hans Jarle - Institutt for foretaksøkonomi, Norges Handelshøyskole … - 2010
We analyze a Hotelling model where consumers either buy one out of two goods (single-purchase) or both (multi-purchase). The firms’ pricing strategies turn out to be fundamentally different if some consumers multi-purchase compared to if all single-purchase. Prices are strategic complements...