The Spatial Structure of Competition and Equilibrium Price Dispersion

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Equilibrium Price Dispersion Across and Within Stores∗

We develop a search-theoretic model of the product market that generates price dispersion across and within stores. Buyers differ with respect to their ability to shop around, both at different stores and at different times. The fact that some buyers can shop from only one seller while others can shop from multiple sellers causes price dispersion across stores. The fact that the buyers who can ...

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ژورنال

عنوان ژورنال: Geographical Analysis

سال: 2010

ISSN: 0016-7363

DOI: 10.1111/j.1538-4632.1985.tb00843.x