Equilibrium Price Dispersion with Consumer Inventories

نویسندگان

  • Pilky Hong
  • R. Preston McAfee
  • Ashish Nayyar
چکیده

A model with two types of consumers, shoppers and captives, is constructed that leads to an equilibrium price dispersion. Shoppers may hold inventories of the good; the level of consumer inventories leads to state-dependent price dispersions. It is shown that prices and quantities display negative serial correlation. The model is tested using grocery store data, which display the predicted correlations. Journal of Economic Literature Classification Numbers: D43, L13, D83, L81. © 2002

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عنوان ژورنال:
  • J. Economic Theory

دوره 105  شماره 

صفحات  -

تاریخ انتشار 2002