MultiPurchasing with Complementarity and Full Market Covering
-with Jong Jae Lee (under revision)
[ABSTRACT] This paper studies implications of complementarity and full market covering property on the existence of multi-purchase equilibrium in the variant of the Hotelling model that allows for an outside option of ``no purchase'' and a multi-purchasing option of buying one unit from every firm. We show that when goods are complements, a multi-purchase equilibrium is a unique equilibrium in which every consumer buys at least one product. Particularly, we show that the set of prices supporting full market covering implies multi-purchasing however large is the value of product for consumers. This provides a cautionary warning to an understanding that full market covering assumption is innocuous because market can be made fully covered if the value of product is sufficiently large.