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 study how the introduction of private-label brands (PLs) affects retailers’ prices, demand, and profits, explicitly accounting for assortment adjustments of national brands (NBs) in retail stores. Using a detailed dataset on the U.S. beef market, we find that, when PLs are added to the...