Information externalities in a model of sales
We anlayze Varian's (1980) Model of Sales, and show that when the number of uninformed consumers increases, prices become less competitive for all consumers. Thus, the influx of uninformed consumers generates a negative externality increasing the prices paid by informed consumers.
Volume (Year): 4 (2001)
Issue (Month): 7 ()
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- Morgan, John & Orzen, Henrik & Sefton, Martin, 2006. "An experimental study of price dispersion," Games and Economic Behavior, Elsevier, vol. 54(1), pages 134-158, January.
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- Michael R. Baye & John Morgan & Patrick Scholten, 2004.
"Price Dispersion In The Small And In The Large: Evidence From An Internet Price Comparison Site,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 52(4), pages 463-496, December.
- Michael R. Baye & John Morgan & Patrick Scholten, 2004. "Price Dispersion in the Small and in the Large: Evidence from an Internet Price Comparison Site," Working Papers 2004-03, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
- N/A, 1981. "Errata," Sociological Methods & Research, , vol. 9(3), pages 389-390, February.
- Ekkehard Kessner & Mattias K. Polborn, 2000. "A New Test of Price Dispersion," German Economic Review, Verein für Socialpolitik, vol. 1(2), pages 221-240, 05.
- Michael R. Baye & John Morgan, 2001. "Information Gatekeepers on the Internet and the Competitiveness of Homogeneous Product Markets," American Economic Review, American Economic Association, vol. 91(3), pages 454-474, June. Full references (including those not matched with items on IDEAS)
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