Business, Management and Accounting
4 years ago

Lower search costs lead to cheaper prices and less price variation.

1 view
RePEc: Research Papers in Economics
Do Lower Search Costs Reduce Prices and Price Dispersion
Pedro Pereira

Paper Summary

Lowering search costs may or may not lead to lower prices and less price variation. This goes against some beliefs about how the Internet affects prices, but matches what we see in online shopping.

Related papers

Business, Management and Accounting
4 years ago

Price dispersion leads to higher profits for lower-priced firms.

Economic Analysis
Monetary Models
Market Dynamics
4 views
Economics, Econometrics and Finance
4 years ago

Producer prices as rigid as consumer prices, impacting inflation dynamics.

Macroeconomic Analysis
Monetary Models
Economic Growth
2 views
Business, Management and Accounting
4 years ago

Electronic markets slash prices, saving consumers millions annually.

Economic Analysis
Mechanism Design
Two-Sided Markets
2 views