Template-Type: ReDIF-Paper 1.0
Title: One-Stop-Shopping hinders Specialization?
Author-Name: Max Riegel
Author-Email: mariegel@mail.uni-mannheim.de
Classification-JEL: D43, L13, L81
Keywords: one-stop-shopping, specialization, multiproduct competition

Abstract: 
I study how consumer preferences for one-stop-shopping affect the resource allocation of 
multiproduct firms. In many markets, consumers prefer to buy multiple products at a single seller. 
At the same time, multiproduct firms have to split their resources between
their products, for instance by allocating R&D budgets or shelf space. One-stop-shoppers
treat firms’ products as if offered as bundles. If there are only one-stop-shoppers, firms
therefore cannot gain from a comparative advantage over a particular product. I show
that firms become more inclined to specialize in different products and gain market
power, as the share of one-stop-shoppers decreases. Thereby, industry profits rise, potentially to the detriment of consumers.

Note: 
Length: 16
Creation-Date: 2025-09
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp701
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2025_701