Equilibrium, the retailers use purely mixed strategies for both prices leading to a price dispersion. If the two goods are complements the prices of the two goods within every shop will be, at least locally, negatively correlated while if they are substitutes or have independent valuations the two prices will be randomized independently. Theoretical literature on multiproduct price competition is relatively scarce. The inherent di culty lies in an ability of consumers to mix and match goods o ered by di erent retailers leading to a complicated pattern of choices. The modeling exercise is further complicated if the demand for goods is interdependent. Nevertheless, several authors have tackled the issue of.
