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Baye Morgan Scholten (2006) - Information Search and Price Dispersion (view source)
Revision as of 21:32, 25 January 2010
, 21:32, 25 January 2010→Search Theoretic Models of Price Dispersion
#Fixed sample search is used
#The distribution of firms' prices is given exogenously by the non-degenerate CDF <math>F(p)\,</math> on <math>[\underline{p}, \overline{p}]\,</math>.
<center>''Fixed sample search''
In a fixed sample search the consumer commits to conducting <math>n\,</math> searches
and then buys from the firm offering the lowest price.</center>
The consumer seeks to minimize the expected cost (purchase + search) given by:
