prices. There are three distinct price dispersed equilibria characterized by low, moderate and high search intensity … intensity, increased competition does not affect expected price, leads to greater price dispersion and welfare declines. In … yields identical expected price and price dispersion but higher welfare than an infinite number of firms. …

We study price formation in the standard model of consumer search for differentiated products but allow for search cost … important but often neglected aspect of the price mechanism. Recognizing the role the equilibrium price plays in consumers …