Key points are not available for this paper at this time.
After surveying existing models of retailing, this paper concentrates on the idea that the shop saves its customers costs by assembling goods in one p lace. This introduces an essential nonconvexity and importantly affec ts the conditions under which shops compete with each other and the c onstraints on their price setting. Under the admittedly unrealistic a ssumption of full buyer information, a theory of retail pricing is de veloped. Copyright 1988 by Blackwell Publishing Ltd.
Christopher Bliss (1988) studied this question.