Price distributions and competition
Considerable evidence demonstrates that significant dispersion exists in the prices charged for seemingly homogeneous goods. This paper adopts a simple, flexible equilibrium model of search to investigate the way the market structure influences price dispersion. Using the noisy search approach, the paper demonstrates the effects of having a single large, price-leading firm with multiple outlets and a competitive fringe of small firms with one retail outlet each.
Year of publication: |
2009
|
---|---|
Authors: | Burdett, Ken ; Smith, Eric |
Institutions: | Federal Reserve Bank of Atlanta |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Silos, Pedro, (2012)
-
Job search with bidder memories
Carrillo-Tudela, Carlos, (2009)
-
Wage dispersion and wage dynamics within and across firms
Carrillo-Tudela, Carlos, (2009)
- More ...