Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/147411
Authors: 
Shelegia, Sandro
Wilson, Chris
Year of Publication: 
2016
Abstract: 
To provide a more flexible workhorse model of temporary price reductions or `sales', this paper presents a substantially generalized `clearinghouse' sales framework. Our framework permits multiple dimensions of firm heterogeneity, and views firms as competing directly in utility rather than prices. The paper i) reproduces and extends many equilibria from the existing literature, ii) offers a range of new results on how firm heterogeneity affects market outcomes, iii) provides original insights into the number and type of firms that use sales, and iv) extends a `cleaning' procedure that is commonly used in empirical studies of sales and price dispersion.
Subjects: 
Sales
Price Dispersion
Advertising
Clearinghouse
Heterogeneity
JEL: 
L13
D43
M3
Document Type: 
Preprint

Files in This Item:
File
Size
511.08 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.