We develop a search-theoretic model of the product market that generates price dispersion across and within stores. Buyers differ with respect to their ability to shop around, both at different stores and at different times. The fact that some buyers can shop from only one seller while others can shop from multiple sellers causes price dispersion across stores. The fact that the buyers who can ...

Suppose that n buyers each want one unit and m sellers each have one or more units of a good. Sellers post prices, and then buyers choose sellers. In symmetric equilibrium, similar sellers all post one price, and buyers randomize. Hence, more or fewer buyers may arrive than a seller can accommodate. We call this frictions. We solve for prices and the endogenous matching function for finite n an...

A two period bargaining model with asymmetric information is considered. An uninformed seller charges a uniform price to two buyers. A risk averse seller offers a larger price cut in period two when one buyer remains in the market than when two buyers remain. The price in period one is sensitive to the number of buyers and the seller’s degree of risk aversion. The initial price charged to a sin...

We consider a population of buyers who have unit demand for a homogeneous good, and only differ in terms of how soon they need to purchase it. These buyers have access to a stochastic stream of second-price auctions, as well as a retail outlet that can be used at any time. We characterize the equilibrium bidding dynamics, showing that bidders steadily raise their reservation price as they appro...

The ultimate effect of regular and diet carbonated soft drinks on energy intakes depends on possible relations with other dietary components. With this motivation, this study compared grocery purchase patterns of regular and diet soft drink consumers using a large sample of US single-person households. We tested for differences in food-spending shares allocated to 43 food categories chosen main...

Existing homes are sold at lower average prices than comparable new homes. Buyers search less intensively among existing homes than new housing projects, but buy more frequently after initial inspections. These and other properties of housing search are predicted in this paper by a model with the following properties. Buyers screen listings on electronic sites and search only among acceptable m...

We examine communication in laboratory games with asymmetric information. Sellers know true asset qualities. Potential buyers only know the quality distribution. Prohibiting communication, we document the degree of adverse selection. Then we examine two alternative communication mechanisms. Under “cheap talk,” each seller can announce any subset of qualities. Under “antifraud,” the subset must ...

We present an agent-based computational economics (ACE) model of the wholesale "sh market in Marseille. Two of the stylized facts of that market are high loyalty of buyers to sellers, and persistent price dispersion, although it is every day the same population of sellers and buyers that meets in the same market hall. In our ACE model, sellers decide on quantities to supply, prices to ask, and ...

the study was designed to analyze credit receipt and enterprise performance by small scale agro based enterprises in the niger delta region of nigeria. a multistage sampling technique was adopted in selecting 264 agro based enterprises and 96 agro based enterprises that accessed informal and formal credit respectively. the heckman model was used to examine the factors affecting amount of inform...