A Generalized Model of Pricing for Homogeneous Goods under Imperfect Information

S-Tier
Journal: Review of Economic Studies
Year: 1982
Volume: 49
Issue: 2
Pages: 229-240

Authors (2)

Asha Sadanand (University of Guelph) Louis Wilde (not in RePEc)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper generalizes the model developed in Wilde and Schwartz (1979) to allow downward sloping demand curves and u-shaped average cost curves. It shows that the basic qualitative conclusions of Wilde and Schwartz still hold. Moreover, it shows that the critical proportion of comparison shoppers needed to generate a competitive equilibrium falls as demand becomes more elastic or average costs become more inelastic. Finally, it shows that when imperfect information generates non-competitive outcomes, they are bounded below, in welfare terms, by the monopolistically competitive equilibrium.

Technical Details

RePEc Handle
repec:oup:restud:v:49:y:1982:i:2:p:229-240.
Journal Field
General
Author Count
2
Added to Database
2026-01-29