Do lower search costs reduce prices and price dispersion?
AbstractThis paper presents a search model, for which a decrease in the search cost may lead to lower prices and to a lower price variance, but may also lead to the opposite. This result contrasts with some predictions about the impact of the Internet on prices, but fits well with the empirical literature on e-commerce.
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Bibliographic InfoArticle provided by Elsevier in its journal Information Economics and Policy.
Volume (Year): 17 (2005)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505549
Other versions of this item:
- Pedro Pereira, 2004. "Do Lower Search Costs Reduce Prices and Price Dispersion?," Working Papers 04, Portuguese Competition Authority.
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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