Consumer search with asymmetric price sampling

We explore asymmetries in the way consumers sample prices in a simple sequential search framework. In equilibrium, the price distribution of a firm catering to more local consumers first-order stochastically dominates that of its rival. Prices rise in the degree of asymmetry.

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Year of publication:	2014
Authors:	Astorne-Figari, Carmen ; Yankelevich, Aleksandr
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 122.2014, 2, p. 331-333
Publisher:	Elsevier
Subject:	Sequential consumer search \| Oligopoly \| Price dispersion

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Type of publication:	Article
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; D83 - Search, Learning, Information and Knowledge ; L13 - Oligopoly and Other Imperfect Markets
Source:	RePEc - Research Papers in Economics

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