Self-confirming price dispersion in monetary economies
In a monetary economy, we show that price dispersion arises as an equilibrium outcome without the need for costly simultaneous search or any heterogeneity in preferences, production costs, or search technologies. A distribution of money holdings among buyers makes sellers indifferent across a set of...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Academic Press Inc.
2019
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| Subjects: | |
| Online Access: | View Fulltext in Publisher |