Asymmetric marginal costs in search models

C-Tier
Journal: Economics Letters
Year: 2012
Volume: 116
Issue: 3
Pages: 551-553

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

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

Abstract

I show that marginal cost asymmetry has important implications for search models. In several widely used search models with mixed strategy equilibria, excluding some special cases, firms with different marginal costs cannot randomize prices in the same interval. So, even a small asymmetry in marginal costs may result in a drastic asymmetry in equilibrium prices.

Technical Details

RePEc Handle
repec:eee:ecolet:v:116:y:2012:i:3:p:551-553
Journal Field
General
Author Count
1
Added to Database
2026-01-29