How do retail prices respond to manufacturer advertising? We use over two years of weekly data for 286 products across eleven product categories to show that retail prices change over and above what is expected after accounting for changes in wholesale prices. This suggests that retailers may...

We analyze a multiproduct duopoly and ask whether firms should offer general purpose products or tailor their offerings to fit specific consumer needs. There are two effects of offering a targeted product: (i) if a consumer's favorite product is offered, her utility increases because there is a...

We analyze a multiproduct duopoly and ask whether firms should offer general purpose products or tailor their offerings to fit specific consumer needs. Offering a targeted product has two effects: utility increases for some consumers due to increased fit, whereas utility decreases for others due...