I propose a general equilibrium model of competition in manufacturing and retailing. Relative to the counterfactual of direct sales by manufacturers, the retail sector increases manufacturing entry and produced variety. Although double marginalization in the sales channel raises prices and hurts...

Consumers commonly face purchasing costs, e.g., travel- or wait-time, that are fixed to quantity but increase with variety. This article investigates the impact of such costs on demand and supply of variety. Purchasing costs limit demand for variety like prices limit demand for quantity. When...

Why do consumers value shopping online? We decompose the value of e-commerce to individual consumers and highlight the role of convenience, i.e., the avoidance of transportation costs. We complement household purchase panel data with precise locations of consumers and stores, and show that...

We review the importance of structural modeling for the purposes of simulation of the effects of changes in marketing policy. We pay particular attention to the aspects of structural modeling which present unique challenges for researchers in marketing. We also catalogue some of the advantages...

We propose a new method to model consumers' consideration and choice processes. We develop a parsimonious probit type model for consideration and a multinomial probit model for choice, given consideration. Unlike earlier models of consideration ours is not prone to the curse of dimensionality,...