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Baye Morgan Scholten (2006) - Information Search and Price Dispersion (view source)
Revision as of 21:47, 25 January 2010
, 21:47, 25 January 2010→The Stigler (1961) Model
The distribution of the lowest <math>n\,</math> draws is: <center><math>F_{min}^{(n)}(p) = 1 - (1-F(p))^n\,</math> </center>
<center><math>\therefore \mathbb{E}(C) = K \int_{\underline{p}}^{\overline{p}} p \; dF_{min}^{(n)}(p) + cn\,</math></center>
<center><math>\therefore \mathbb{E}(C) = K \left [ \underline{p} + \int_{\underline{p}}^{\overline{p}} 1-(1-F(p))^n \; dp \right ] + cn\,</math></center>
