We model the pricing decisions of a multi-product firm that faces a fixed “menu” cost: once the cost is paid, the firm can adjust the price of all its products. We characterize analytically the steady state firm's decision in terms of the structural parameters: the variability of the...

We study the pricing behavior of a multiproduct monopolist, when consumers must pay a search cost to learn its prices. Equilibrium prices are high because rational consumers understand that visiting the store exposes them to a hold-up problem. However a firm with more products attracts more...

The Pennsylvania Liquor Control Board administers the purchase and sale of wine and spirits and is mandated to charge a uniform 30% markup on all products. We use an estimated discrete choice model of demand for spirits, together with information on wholesale prices, to assess the implications...