IDEAS home Printed from https://ideas.repec.org/a/bpj/bejmac/vtopics.3y2003i1n5.html
   My bibliography  Save this article

Price Distribution in a Symmetric Economy

Author

Listed:
  • Kultti Klaus

    (University of Helsinki)

  • Virrankoski Juha

    (Helsinki School of Economics)

Abstract

We consider an economy with symmetric buyers and symmetric sellers. The sellers are in locations and post prices simultaneously. The buyers observe the prices, and each buyer visits one location. The buyers act independently and employ symmetric mixed strategies. We show that when there are several sellers in a location, the Nash equilibrium features price dispersion, i.e. the sellers post different prices. The equilibrium strategy of the sellers is a non-atomic distribution.

Suggested Citation

  • Kultti Klaus & Virrankoski Juha, 2003. "Price Distribution in a Symmetric Economy," The B.E. Journal of Macroeconomics, De Gruyter, vol. 3(1), pages 1-21, April.
  • Handle: RePEc:bpj:bejmac:v:topics.3:y:2003:i:1:n:5
    DOI: 10.2202/1534-5998.1061
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1534-5998.1061
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    File URL: https://libkey.io/10.2202/1534-5998.1061?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gil, Pedro Mazeda & Figueiredo, Fernanda & Afonso, Oscar, 2010. "Equilibrium price distribution with directed technical change," Economics Letters, Elsevier, vol. 108(2), pages 130-133, August.
    2. Kultti, Klaus & Virrankoski, Juha, 2004. "Price distribution in a random matching model," Economics Letters, Elsevier, vol. 83(3), pages 405-409, June.
    3. Marja-Liisa Halko & Klaus Kultti & Juha Virrankoski, 2005. "Wage Distribution with a Two-Sided Job Auction," 2005 Meeting Papers 518, Society for Economic Dynamics.

    More about this item

    Keywords

    price distribution; search;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:bejmac:v:topics.3:y:2003:i:1:n:5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.