In a four-treatment experiment, we test some of the hypotheses in Garcia-Gallego et al.(2004) concerning competition among a number of firms of which some (or all) are indexed by a price-comparison engine facilitating buyers' search process. In this paper, we isolate individual behavior from...

We study optimal dynamic selling mechanisms in a two-stage model where the buyer can search for a better price at the second stage. When this outside price is public, the optimal selling mechanism takes the form of a fixed first-stage price with price matching in the second stage. In contrast,...

This paper develops a price-theoretic framework for matching markets with heterogeneous preferences. The model departs from the standard Gale and Shapley (1962) model by assuming that a finite number of agents on one side (colleges or firms) are matched to a continuum mass of agents on the other...

We study a new data set of US sports card conventions in order to evaluate the pricing theory of two-sided markets. Conventions are two-sided because organizers must set fees to attract both consumers and dealers. We have detailed information on consumer price, dealer price and, since most...

Most markets clear through a sequence of sales rather than through a Walrasian auctioneer. Because buyers can decide between buying now or later, rather than only now or never, buyers' current 'willingness to pay' is much more sensitive to price than is the demand curve. A consequence is that...

Intro -- Israel M. Kirzner, Market Theory and The Price System -- Front Matter -- Title Page -- Copyright Details -- Table of Contents, p. vii -- Introduction to the Liberty Fund Edition, p. xi -- Preface, p. xvii -- Market Theory and The Price System -- 1. The Nature and Tasks of Market Theory,...