Information and Price Dispersion. Theory and Evidence
Dieter Pennerstorfer,
Philipp Schmidt-Dengler,
Nicolas Schutz,
Christoph Weiss and
Biliana Yontcheva
No 502, WIFO Working Papers from WIFO
Abstract:
We examine the relationship between information and price dispersion in the retail gasoline market. We first show that the clearinghouse models in the spirit of Stahl (1989) generate an inverted-U relationship between information and price dispersion. We construct a new measure of information based on precise commuter data from Austria. Regular commuters can freely sample gasoline prices on their commuting route, providing us with spatial variation in the share of informed consumers. We use detailed information on gas station level price to construct various measures of price dispersion. Our empirical estimates of the relationship are in line with the theoretical predictions.
Pages: 63 pages
Date: 2015-08
New Economics Papers: this item is included in nep-com, nep-ict, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)
Downloads: (external link)
https://www.wifo.ac.at/wwa/pubid/58341 abstract (text/html)
Related works:
Journal Article: INFORMATION AND PRICE DISPERSION: THEORY AND EVIDENCE (2020) 
Working Paper: Information and Price Dispersion: Theory and Evidence (2015) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:wfo:wpaper:y:2015:i:502
Access Statistics for this paper
More papers in WIFO Working Papers from WIFO Contact information at EDIRC.
Bibliographic data for series maintained by Florian Mayr (florian.mayr@wifo.ac.at).