Price dispersion in a directed search model

Ce Huang

Canadian Journal of Economics, 2016, vol. 49, issue 3, 1208-1223

Abstract: This paper investigates a directed search model in which some buyers are uninformed about prices. We find that sellers' strategies are given by discrete distributions in any symmetric pricing equilibrium. When the proportion of uninformed buyers is sufficiently high, the unique symmetric pricing equilibrium involves a countably infinite number of atoms.

JEL-codes: C72 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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