There are two objectives of this article: (i) It is discussed theoretically how the dynamics of pricing decisions of multiproduct retailers can be explained. (ii) It is analyzed empirically by use of scanner data how prices are actually set and how consumers react at the point of sale to price...

There are two objectives of this article: (i) It is discussed theoreticallyhow the dynamics of pricing decisions of multiproduct retailers can be explained. (ii) It is analyzed empirically by use ofscanner data how prices are actually set and how consumers reactat the point of sale to price...