Changes

The Stigler model also implies that expected transaction prices will be lower when prices have the same mean but are more dispersed. There is a simple graphical proof of this. Suppose that the customer is drawing from one of the two distributions pictured - a draw from the green distribution (that has the higher variance) would be more likely to yield a lower price and have lower total costs. [[Image:Two_Normals.png|thumb|right|500px|A mean preserving spread on a Normal distribution]]