The DOI matches its Crossref record.
A Simple Model of Equilibrium Price Dispersion
Abstract
This paper demonstrates that price dispersion can exist even within the context of a very simple model. Identical buyers with elastic demand curves sample sequentially from a known price distribution, at a fixed cost per observation. Firms are assumed to be perfectly informed of buyers' reservation prices and demand functions. Given the firms' distribution of marginal costs, firms' behavior as monopolistic competitors results in their offering a distribution of prices which is consistent with expected utility maximization by buyers and with expected profit maximization by sellers.
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Cited by
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Varian, H. R. (1989) · Handbook of Industrial Organization · doi:10.1016/s1573-448x(89)01013-7 · Cited by 343
Match Quality, Search, and the Internet Market for Used Books
Ellison, G., & Ellison, S. F. (2018) · doi:10.3386/w24197 · Cited by 53
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Honka, E., Seiler, S., & Ursu, R. (2024) · Journal of Retailing · doi:10.1016/j.jretai.2024.02.003 · Cited by 40
Metadata
- Authors
- Reinganum, J. F.
- Venue
- Journal of Political Economy
- Publisher
- University of Chicago Press
- Published
- 1979-08
- Volume
- 87
- Issue
- 4
- Pages
- 851-858
- ISSN
- 0022-3808 (ISSN-L)
- 1537-534X
- OpenAlex
- W1983015749
- Cited by
- 426
- References
- 0
- FWCI
- 8.73
- Type
- journal article
- Language
- en
- Open access
- closed
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
