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RePEc: Research Papers in Economics
Is intertemporal price discrimination the cause of price dispersion in markets with low search costs
Charlie Lindgren, Sven‐Olov Daunfeldt, Niklas Rudholm, Siril Yella

Paper Summary

The study looked at why prices vary for the same products online. Researchers found that prices don't change randomly over time as expected with intertemporal price discrimination. Instead, retailers stick to their price clusters, making it easy for customers to find the best deals. This suggests that intertemporal price discrimination is not the main reason for price differences in online markets with low search costs.

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