Price Dispersion and Stockpiling by Consumers

S-Tier
Journal: Review of Economic Studies
Year: 1983
Volume: 50
Issue: 3
Pages: 443-465

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

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

Abstract

This paper presents a model of equilibrium price dispersion in which buyers do not search. However they are able to store the non-durable commodity for future use. Such behaviour implies sellers' demand curves are endogenously generated by the observed price distribution. Equilibrium is shown to exist. Although more than one price may be charged in equilibrium, the monopoly price will occur with positive probability. Comparative static results are derived with a linear version of the model, some of which are "perverse".

Technical Details

RePEc Handle
repec:oup:restud:v:50:y:1983:i:3:p:443-465.
Journal Field
General
Author Count
1
Added to Database
2026-01-25