Supermarkets with more product variety charge higher prices but offer more discounts.
The study looked at how offering a wider variety of products in supermarkets affects prices. By analyzing data from over 750,000 products, researchers found that stores with more product variety tend to have higher prices but also offer more discounts. They discovered that adding more brands leads to higher prices, while adding more categories leads to lower prices in most stores. This means that having a larger selection of products can impact pricing strategies in different ways.