Search, Information, and Prices
Bibliographic Data
| ID | 10175446 |
|---|---|
| Authors | Dirk Bergemann (0000-0002-2759-6962, Yale University), Benjamin Brooks (0000-0002-0888-3288), B A Brooks (0000-0001-7954-6281, University of Chicago), Stephen Morris (0000-0003-2551-9717, Massachusetts Institute of Technology) |
| Year | 2021 |
| Volume | 129 |
| Issue | 8 |
| Pages | 2275-2319 |
| Publication date | 2021-03-24 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/714443 |
| OpenAlex | W3139093921 |
| Language | EN |
| Citations received | 1 |
| References cited | 20 |
Consider a market with identical firms offering a homogeneous good. For any given ex ante distribution of the price count (the number of firms from which a consumer obtains a quote), we derive a tight upper bound on the equilibrium distribution of sales prices. The bound holds across all models of firms’ common-prior higher-order beliefs about the price count, including the extreme cases of full information and no information. One implication of our results is that a small ex ante probability that the price count is equal to one can lead to a large increase in the expected price. The bound also applies in a large class of models where the price count distribution is endogenously determined
Combinatorics · Distribution (mathematics · Econometrics · Economics · Ex-ante · Homogeneous · Microeconomics · Order (exchange · Upper and lower bounds · Auction Theory and Applications · Consumer Market Behavior and Pricing · Game Theory and Applications · Mathematics
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,33 |
| Citation span | 2023 - 2023 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |