I use a flexible price version of the Prescott (1975) “hotels” model to study a dynamic model that allows for storage … not important. The cost of delay is also relevant for price dispersion: Lower cost of delays may lead to lower price …

factor linked to productivity, which can be used to price any asset, without regard to preferences …

factor linked to productivity, which can be used to price a wide variety of assets, without regard to preferences …

distributional shifts: (i) a rightward shift of the distribution, (ii) a Rothschild-Stiglitz increase in risk, and (iii) a Menezes et … al. increase in downside risk. In particular, assuming that the von Neumann-Morgenstern utility is increasing and concave … unambiguous in the case of price less than or equal to marginal cost. In the alternative case of price greater than marginal cost …