Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/130528
Authors: 
Sherman, Joshua
Weiss, Avi
Year of Publication: 
2014
Series/Report no.: 
Working Papers, Bar-Ilan University, Department of Economics 2014-06
Abstract: 
We exploit cross-sectional and temporal differences in search intensity in order to examine the relationship between search costs and price dispersion using a hand-collected panel data set from Jerusalem's Shuk Mahane Yehuda outdoor market. We present empirical evidence that price dispersion increases with the cost of search using several different measures of price dispersion, however, our interpretation of this finding is sensitive to the search proxy in question. We also address several acute difficulties facing empiricists seeking to test theoretical price-dispersion models in which consumers are heterogeneous in their search behavior.
JEL: 
L11
L13
Document Type: 
Working Paper

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