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Journal Publication

Search, Information, and Prices

Published: August 2021

This paper studies the role of consumer search in determining prices of a homogeneous product sold by competing firms; in particular, it provides an upper bound on distribution of prices as a function of the number of price quotes that consumers obtain. A consequence of the paper’s results is that firms’ belief that consumers may only obtain one price quote can lead to high prices.

Abstract and Citation

Search, Information, and Prices
Dirk Bergemann, Benjamin Brooks, and Stephen Morris
Journal of Political Economy 2021 129:8, 2275-2319