... Section 7 concludes with directionsfor future research.2. The Supermarket PricingLandscape2.1. Pricing Strategy ChoicesCompetition in the supermarket industry is a complexphenomenon. Firms compete ... two-step approachdeveloped by Bajari et al. (2005).3. A Strategic Model ofSupermarket PricingA supermarket s choice of pricing strategy is natu-rally framed as a discrete game between a finite ... Inour framework, firms (i.e., supermarket chains8) makea discrete choice of pricing strategy, selecting amongthree alternatives: everyday low pricing, promotionalpricing, and a hybrid strategy....