An experimental study of price dispersion in an optimal search model with advertising

International Journal of Industrial Organization

Volumn 24, Issue 3, 2006, Pages 639-665

  Cason, Timothy N ^a   Datta, Shakun ^a  

^a PURDUE UNIVERSITY   (United States)

Author keywords

Laboratory; Market power; Mixed strategy; Posted offer; Shopping; Uncertainty

Indexed keywords

COST EFFECTIVENESS; MARKETING; MATHEMATICAL MODELS;

LABORATORY; MARKET POWER; MIXED STRATEGY; POSTED OFFER; SHOPPING; UNCERTAINTY;

INDUSTRIAL ECONOMICS;

EID: 33644771176     PISSN: 01677187     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ijindorg.2005.08.016     Document Type: Article

References (32)

1. E. Abrams, M. Sefton, and A. Yavas An experimental comparison of two search models Economic Theory 16 2000 735 749
2. M. Baye, and J. Morgan Information gatekeepers on the Internet and the competitiveness of homogeneous product markets American Economic Review 91 2001 454 474
3. M. Baye, J. Morgan, and P. Scholten Price dispersion in the small and in the large: evidence from an Internet price comparison site Journal of Industrial Economics 52 2004 463 496
4. H. Bester Random advertising and monopolistic price dispersion Journal of Economics and Management Strategy 3 1994 545 560
5. E. Brynjolfsson, and M. Smith Frictionless commerce? A comparison of Internet and conventional retailers Management Science 46 2000 563 585
6. K. Burdett, and K. Judd Equilibrium price dispersion Econometrica 51 1983 955 970
7. G. Butters Equilibrium distributions of sales and advertising prices Review of Economic Studies 44 1977 465 492
8. R. Caminal Price advertising and coupons in a monopoly model Journal of Industrial Economics 44 1996 33 52
9. Cason, T., Datta, S., 2005. Costly buyer search in laboratory markets with seller advertising. Working Paper, Purdue University.
10. T. Cason, and D. Friedman Buyer search and price dispersion: a laboratory study Journal of Economic Theory 112 2003 232 260
11. D. Davis, and C. Holt Consumer search costs and market performance Economic Inquiry 34 1996 133 151
12. D. Davis, and A. Williams The Hayek hypothesis in experimental auctions: institutional effects and market power Economic Inquiry 29 1991 261 274
13. P. Diamond A model of price adjustment Journal of Economic Theory 3 1971 156 168
14. M. Dufwenberg, and U. Gneezy Price competition and market concentration: an experimental study International Journal of Industrial Organization 18 2000 7 22
15. Fischbacher, 1999. z-Tree: A toolbox for readymade economic experiments. Working Paper 21, University of Zurich.
16. García-Gallego, A., Georgantzís, N., Pereira, P., Pernías-Cerrillo, J., 2004. Risk attitudes and Internet search engines: theory and experimental evidence. Working Paper 04-03, NET Institute.
17. D.M. Grether, A. Schwartz, and L.L. Wilde Uncertainty and shopping behavior: an experimental analysis Review of Economic Studies 55 1988 323 342
18. Morgan, J., Orzen, H., Sefton, M., in press-a. An experimental study of price dispersion. Games and Economic Behavior.
19. Morgan, J., Orzen, H., Sefton, M., in press-b. A laboratory study of advertising and price competition. European Economic Review.
20. T. Offerman, J. Potters, and J. Sonnemans Imitation and belief learning in an oligopoly experiment Review of Economic Studies 69 2002 973 997
21. J. Reinganum A simple model of equilibrium price dispersion Journal of Political Economy 87 1979 851 858
22. J. Robert, and D.O. Stahl Informative price advertising in a sequential search model Econometrica 61 1993 657 686
23. S. Salop Wage differentials in a dynamic theory of the firm Journal of Economic Theory 6 1973 321 344
24. S. Salop, and J. Stiglitz Bargains and ripoffs: a model of monopolistically competitive price dispersion Review of Economic Studies 44 1977 493 510
25. S. Salop, and J. Stiglitz The theory of sales: a simple model of equilibrium price dispersion with identical agents American Economic Review 72 1982 1121 1130
26. V. Smith Microeconomic systems as an experimental science American Economic Review 72 1982 923 955
27. D.O. Stahl Oligopolistic pricing with sequential consumer search American Economic Review 79 1989 700 712
28. Stahl, D.O., 1990. Strategic advertising and pricing with sequential buyer search. Center for Economic Research. University of Texas, Discussion Paper 90-04.
29. D.O. Stahl Oligopolistic pricing with heterogeneous consumer search International Journal of Industrial Organization 14 1996 243 268
30. G. Stigler The economics of information Journal of Political Economy 69 1961 213 225
31. J. Stiglitz Equilibrium in product markets with imperfect information American Economic Review 69 1979 339 345
32. H. Varian A model of sales American Economic Review 70 1980 651 659