Working Papers

Beyond Plain Vanilla: Modeling Joint Product Assortment and Pricing Decisions

Michaela Draganska, Michael Mazzeo, and Katja Seim

Jan 1, 2007

Proposes a model of product assortment and pricing decisions, where profits of the competing brands are derived explicitly from consumer demand. Shows the importance of allowing for endogenous product choices in evaluating the profitability and welfare impact of different assortments.

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