Rivalry in Price and Variety among Supermarket Retailers
用嵌套不变替代弹性模型分析超市零售商的定价和品种策略，发现它们既在价格也在品种上竞争，但品种合作程度不如价格一致。
Recent theoretical models of retail competition suggest that product heterogeneity is critical to retail price and variety strategies. This article provides empirical evidence on supermarket retailers' price and variety strategies using a nested constant elasticity of substitution (NCES) modeling framework. The model is estimated using chain‐level scanner data for four major grocery chains in a large, urban West Coast market. The results show that retailers compete for market share using both price and variety. While they all tend to follow moderately cooperative pricing strategies, the extent to which they follow cooperative strategies in variety is less homogeneous.