In this paper, we incorporate a price search decision into an incomplete markets model and differentiate consumption from expenditure. In our model, consumers are allowed to allocate part of their time on searching for low prices which leads to an endogenous price dispersion. A plausibly...

There is a rising number of concepts that try to describe the broad perception of time poverty. Though detailed time poverty analyses are available, still little is said about its impacts on the individual behaviour. Within this article, a possible new implication is analysed: The author tests...

In this paper, we incorporate a price search decision into a life cycle model and differentiate consumption from expenditure. Consumers with low wealth and bad income shocks search more for cheaper prices and pay less, which makes their consumption higher than in a model without search option. A...