Anderson, Simon P.; Renault, Regis - In: RAND Journal of Economics 30 (1999) 4, pp. 719-735
We study price competition in the presence of search costs and product differentiation. The limit cases of the model are the "Bertrand Paradox," the "Diamond Paradox," and Chamberlinian monopolistic competition. Market prices rise with search costs and decrease with the number of firms. Prices...