About this document
Price Dispersion with Perfect Information by marhelun is a document available to read on EtoBox.
This document summarizes a research paper that explores the possibility of price dispersion in a market with perfect information and identical agents. It presents a two-stage model where two identical firms first choose their service capacities, and then set prices. Consumers face a congestion cost that increases with the number of consumers at a firm. The model demonstrates there can be an equilibrium with different prices and capacities, consistent with empirical findings on gasoline prices and station ca
- Author
- marhelun
- Language
- EN