one. We find that information frictions lead to price dispersion. When the two goods are complements, their prices will … empirical evidence which suggests that simultaneous price discounts of complements are infrequent. If the goods are substitutes … complements, retailers earn higher profits than in the one-good model through taxing captive consumers with a high overall price …

monopolists, nesting standard models of perfect complements and imperfect substitutes. I show sufficient conditions for a discrete …