necessarily reflect the views of the Federal Reserve Bank of Dallas or the Federal Reserve System. A Simple Model of Price Dispersion
| Title: | necessarily reflect the views of the Federal Reserve Bank of Dallas or the Federal Reserve System. A Simple Model of Price Dispersion |
|---|---|
| Authors: | Alexander Chudik; Jel Codes C |
| Contributors: | The Pennsylvania State University CiteSeerX Archives |
| Source: | http://www.dallasfed.org/assets/documents/institute/wpapers/2012/0112.pdf. |
| Publication Year: | 2011 |
| Collection: | CiteSeerX |
| Subject Terms: | Price Dispersion; Matching Models. JEL Classi cation; C78; D43 |
| Description: | This article considers a simple stock-flow matching model with fully informed market participants. Unlike in the standard matching literature, prices are assumed to be set ex-ante. When sellers pre-commit themselves to sell their products at an advertised price, the unique equilibrium is characterized by price dispersion due to the idiosyncratic match payoffs (in a marketplace with full information). This provides new insights into the price dispersion literature, where price dispersion is commonly assumed to be generated by a costly search of uninformed buyers. |
| Document Type: | text |
| File Description: | application/pdf |
| Language: | English |
| Relation: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.637.2741; http://www.dallasfed.org/assets/documents/institute/wpapers/2012/0112.pdf |
| Availability: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.637.2741; http://www.dallasfed.org/assets/documents/institute/wpapers/2012/0112.pdf |
| Rights: | Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| Accession Number: | edsbas.F9EBE0D8 |
| Database: | BASE |