Weinstein, Jonathan; Ambrus, Attila - In: Theoretical economics : TE ; an open access journal in … 3 (2008) 4, pp. 525-537
Dispersion in retail prices of identical goods is inconsistent with the standard model of price competition among identical firms, which predicts that all prices will be driven down to cost. One common explanation for such dispersion is the use of a loss-leader strategy, in which a firm prices...