A simple model of price dispersion
نویسندگان
چکیده
منابع مشابه
A Simple Model of Price Formation
A simple Ising spin model, which can describe the mechanism of price formation in financial markets is proposed. In contrast to other agent-based models, the influence does not flow inward from the surrounding neighbors to the center site, but spreads outward from the center to the neighbors. The model thus describes the spread of opinions among traders. It is shown via standard Monte Carlo sim...
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A brief survey of the economics of price dispersion, written for the New Palgrave Dictionary of Economics, 2nd Edition. Journal of Economic Literature classification numbers: C72, D43, D82, D83. Price dispersion occurs when different sellers offer different prices for the same good in a given market. Thus, it differs from price discrimination under which a single seller offers different prices ...
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We model firm pricing given consumers follow simple reservation price rules. Such reservation rules are rational when consumers are sufficiently impatient. The equilibrium exhibits price dispersion in pure strategies, with lower price firms earning higher profits. The range of price dispersion increases with the number of firms: the highest price is the monopoly one, while the lowest price tend...
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Price dispersion is analyzed in the context of a queuing market where customers enter queues to acquire a good or service and may experience delays. With menu costs, price dispersion arises and can persist in the medium and long run. The queuing market rations goods in the same way whether firm prices are optimal or not. Price dispersion reduces the rate at which customers get the good and redu...
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While there are suggestions in applied cartel studies that price dispersion changes when cartelization of a market occurs, there are few theoretical or empirical analyses of this effect. This paper surveys the thin economic literature on the link between overt collusion and price dispersion. Formal theories and observation of cartel behavior suggest that during successfully collusive periods pr...
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ژورنال
عنوان ژورنال: Economics Letters
سال: 2012
ISSN: 0165-1765
DOI: 10.1016/j.econlet.2012.06.003