We run a market experiment where firms can choose not only their price but also whether to present comparable offers. They are faced with artificial demand from consumers who make mistakes when assessing the net value of products on the market. If some offers are comparable however, some...

Looking at a large number of markets, I find that (i) prices and variety are higher when there are two competing supermarkets than in those with a single store and (ii) the two effects are positively correlated. This pattern persists after controlling for differences across markets in a variety...

In many (online) markets, consumers can readily observe prices, but need to examine individual products at positive cost in order to assess how well they match their needs. We propose a tractable model of price-directed sequential search in a market where firms compete in prices. Each product...