Sinitsyn, Maxim - In: International Journal of Industrial Organization 27 (2009) 2, pp. 197-205
In this paper, I modify Varian's [Varian, H.R. (1980). A model of sales, American Economic Review, 70(4), 651-659] model of sales to allow for heterogeneity in consumer preferences. I show that in mixed strategy equilibria each firm charges a finite number of prices. Using this characterization,...