Price Setting and Competition with Search Frictions
نویسندگان
چکیده
منابع مشابه
Market Frictions, Demand Structure and Price Competition in Online Markets
Recent empirical evidence shows the Law of One Price does not exist in online environment despite the unprecedented amount of price transparency. The failure of Law of One Price has been attributed to search costs, brand loyalty and other kinds of “market frictions” that enable retailers to keep some of their customers even if they don’t charge the lowest price in the market. While the presence...
متن کاملSearch frictions and market power in negotiated price markets∗
This paper provides a framework for the empirical analysis of negotiated-price markets in which buying is single-source. These markets pose a challenge for empirical work since, although buyers potentially negotiate with many sellers, data-sets typically include only accepted offers. Moreover, negotiated-price markets feature search frictions, since consumers incur a cost to gather quotes, and ...
متن کاملMarkets with Search Frictions
THE ROYAL SWEDISH ACADEMY OF SCIENCES has as its aim to promote the sciences and strengthen their influence in society.
متن کاملPrice competition, Sequential Search and Sellers’ rationality
We consider a sequential search model with two types of consumers: (‘high cost’s) consumers who incur a positive search cost at each visit and informed consumers who visit all the firms at no cost. The objective is to compare Nash market predictions with a market with adaptive sellers using reinforcement learning. Simulation Results show that Reinforcement Learning never converges to Nash equil...
متن کاملMarket-making with Search and Information Frictions∗
We develop a dynamic model of trading through market-makers that incorporates two canonical sources of illiquidity: trading (or search) frictions and asymmetric information. We show that conventional predictions, derived from models that study either of these frictions in isolation, do not necessarily hold when both frictions are present. These results have important implications for technologi...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2008
ISSN: 1556-5068
DOI: 10.2139/ssrn.1151193