EconPapers    
Economics at your fingertips  
 

Asymmetric capacity constraints and equilibrium price dispersion

Michael Arnold () and Christine Saliba

Economics Letters, 2011, vol. 111, issue 2, 158-160

Abstract: Price dispersion arises despite perfect information about prices. In equilibrium the higher capacity firm adopts a high-price, high-availability strategy, the lower capacity firm adopts a low-price, low-availability strategy, and consumers are more likely to shop at the high-price firm.

Keywords: Equilibrium; price; dispersion; Capacity; constraints; Search (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165-1765(11)00064-4
Full text for ScienceDirect subscribers only

Related works:
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:eee:ecolet:v:111:y:2011:i:2:p:158-160

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2021-06-30
Handle: RePEc:eee:ecolet:v:111:y:2011:i:2:p:158-160