Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/94791 
Authors: 
Year of Publication: 
1980
Series/Report no.: 
IUI Working Paper No. 34
Publisher: 
The Research Institute of Industrial Economics (IUI), Stockholm
Abstract: 
In this paper we examine the stability properties of price dispersion equi1ibrium in a market where individuals and firms have to make efforts to collect information about the prices charged by firms and demand resulting from consumer behavior. The households are searching according to sequential stopping rules and the firms are making experiments in order to find out their demand curve. We show that the price dispersion equilibrium in such a market is stable.
Subjects: 
Consumer and firm behavior
Imperfect information
Price equilibrium
JEL: 
C70
D11
D21
Document Type: 
Working Paper

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