Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/70662
Authors: 
Burdett, Kenneth
Smith, Eric
Year of Publication: 
2009
Series/Report no.: 
Working Paper, Federal Reserve Bank of Atlanta 2009-27
Abstract: 
Considerable evidence demonstrates that significant dispersion exists in the prices charged for seemingly homogeneous goods. This paper adopts a simple, flexible equilibrium model of search to investigate the way the market structure influences price dispersion. Using the noisy search approach, the paper demonstrates the effects of having a single large, price-leading firm with multiple outlets and a competitive fringe of small firms with one retail outlet each.
Subjects: 
price dispersion
consumer search
market structure
JEL: 
D40
L7
Document Type: 
Working Paper

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