A challenge for online retail firms is managing stockouts when substitute products are available. Firms have options to set prices or offer substitute products to retain or release the consumers following stockouts. We develop a game-theoretic model in which competing online firms face the...

We use evidence from store openings by a bricks-and-clicks retailer to examine the drivers of substitution and complementarity between online and offline retail channels. Our evidence supports the coexistence of substitution across channels and complementarity in demand. In places where the...