Relative Price Dispersion: Evidence and Theory

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2019
Volume: 11
Issue: 3
Pages: 68-124

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

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

Abstract

Relative price dispersion refers to persistent differences in the price that different retailers set for one particular good relative to the price they set for other goods. Relative price dispersion accounts for 30 percent of the overall variance of prices at which the same good is sold during the same week and in the same market. Relative price dispersion can be rationalized as the consequence of a pricing strategy used by sellers to discriminate between high-valuation buyers who need to make all of their purchases in one store, and low-valuation buyers who are able to purchase different items in different stores.

Technical Details

RePEc Handle
repec:aea:aejmic:v:11:y:2019:i:3:p:68-124
Journal Field
General
Author Count
4
Added to Database
2026-01-25