We combine spatial and monopolistic competition to study market interactions between downtown retailers and an outlying shopping mall. Consumers shop at either marketplace or at both, and buy each variety in volume. The market solution stems from the interplay between the market expansion...

Prices that end with 9, also known as psychological price points, are common, comprising about 70% of the retail prices. They are also more rigid than other prices. We take advantage of a natural experiment to document an emergence of a new price ending that has the same effects as 9-endings. In...

This paper provides a new and complementary explanation for a pricing puzzle for seasonal products, namely, counter-cyclical pricing, drawing on the category-expansion effects of price promotions. Our study emphasizes the seasonal fluctuation in promotion frequency rather than the change in...

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...

Using data from Taiwan's Yahoo! auctions of Nikon cameras, this paper investigates whether there exists any difference in transaction results between commodities which are sold by authorized sellers and those which are parallel imports. We find that the parallel imports and the authorized...

Either empty inventories or empty shelves can cause stock-outs in retailing. Both can occur independently from each other, entail different kinds of damages and thus call for different counter measures. As such a counter measure, this paper presents a method to detect empty shelves through...

Literature in economics and psychology on moral behaviour explores the contexts in which people act in ways that are consistent or inconsistent with their past actions. Such inconsistencies appear to violate economists' assumption of rational consumer behaviour. In this note we show that a...

There is a significant literature in economics and psychology on moral behaviour exploring the contexts in which people act in ways that are consistent or inconsistent with their earlier actions, where consistency involves behaviour that is in line with a previous action (e.g. foot-in-the-door...