In this paper I show that consumers in food stores and supermarkets/hypermarkets became significantly less price sensitive between 2006 and 2017. At the median, across thousands of stores and products in nine large categories, estimated own-price elasticities have declined by 25% over this...

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...