Abstract
We introduce a new price competition model of search for a single product among multiproduct firms. Search order is optimal within and across firms. Consumers have limited time and require a random time to sample a product. Different search outcomes lead to price dispersion. We describe a symmetric mixed equilibrium where multiproduct firms provide discounted prices on some products and expensive prices on others. Compared to single-product oligopolies, this strategy alleviates competition by (i) engaging consumers in searching more within (less across) firms and (ii) enabling more refined price discrimination.
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