Active search in the Diamond search model

Arthur Fishman ()
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Arthur Fishman: Ariel University and Bar Ilan University

Economics Bulletin, 2021, vol. 41, issue 3, 2127-2132

Abstract: It is shown that introducing both consumer and firm heterogeneity into Diamond's original search model leads to both price dispersion and active consumer search in equilibrium.

Keywords: Diamond paradox; active search; price dispersion (search for similar items in EconPapers)
JEL-codes: D4 D8 (search for similar items in EconPapers)
Date: 2021-09-18
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