The search literature offers several mechanisms by which a multiproduct retailer's offering of a larger variety affects consumers' search behavior and hence prices. Among them are (1) higher sales to be generated when lower prices discourage consumers' further search; and (2) more pricing power...

We empirically study the price adjustment process at multiproduct retail stores. We use a unique store level data set for five large supermarket and one drugstore chains in the USA, to document the exact process required to change prices. Our data set allows us to study this process in great...