Mutual Fund Risk/Return Summary Taxonomy Preparers Guide

Armstrong and Vickers (2001) have shown that if the consumers are required to buy all the goods at one shop (a practice usually referred to as \pure bundling") the competition can be modeled in terms of utility oers made by retailers and thus solved relatively easily. The aim of this study is distinctly dierent: we want to analyze pricing strategies of multiproduct retailers when, at least some, consumers are able to buy products at dierent shops. This phenomena seems to be widespread (e.g. savvy shoppers who buy a TV set at one shop and a DVD player at another) and Armstrong and Vickers (2001) do not address it...