Do Lower Search Costs Reduce Prices and Price Dispersion?

This paper presents a search model, for which a decrease in the search cost may lead to lower prices and to a lower price variance, but may also lead to the opposite. This result contrasts with some predictions about the impact of the Internet on prices, but fits well with the empirical literature on e-commerce.

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Year of publication:	2004-09
Authors:	Pereira, Pedro
Institutions:	Autoridade de Concorrência, Government of Portugal
Subject:	Search \| Price Levels \| Price Dispersion

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 04 14 pages
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; D83 - Search, Learning, Information and Knowledge ; L13 - Oligopoly and Other Imperfect Markets
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005106800