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Baye Morgan Scholten (2006) - Information Search and Price Dispersion (view source)
Revision as of 22:07, 25 January 2010
, 22:07, 25 January 2010→The Stigler (1961) Model
<center><math>\therefore \mathbb{E}(C) = K \left [ \underline{p} + \int_{\underline{p}}^{\overline{p}} (1-F(p))^n \; dp \right ] + cn\,</math></center>
To see this, first recall that <center><math>\mathbb{E}(X) = \int_{\underline{x}}^{\overline{x}} x f(x) dx\,</math></center> Then use the integration by parts formula <center><math>\int u\,\frac{dv}{dx}\; dx=uv-\int v\, \frac{du}{dx} \; dx\!</math></center>
\,</math>
