H. Sebastian Heese, Poole College of Management, NC State, Effects of Assortment Breadth Announcements on Manufacturer Competition
Daniels 218Retailers typically use assortment planning to maximize store profits given product characteristics. We study the manufacturers' price-setting interactions and how these can be manipulated by the retailer's assortment strategy. We show that constraining the breadth of the assortment has two main effects on retailer profits: first, a larger assortment may intensify competitive pressure and decrease…