Equilibrium Price Dispersion with Online Search

被引:0
作者
Xu, Lizhen [1 ]
Chen, Jianqing [2 ]
Whinston, Andrew [1 ]
机构
[1] Univ Texas Austin, McCombs Sch Business, Austin, TX 78712 USA
[2] Univ Calgary, Haskayne Sch Business, Calgary, AB, Canada
来源
43RD HAWAII INTERNATIONAL CONFERENCE ON SYSTEMS SCIENCES VOLS 1-5 (HICSS 2010) | 2010年
关键词
MODEL; BEHAVIOR; INDUSTRY;
D O I
暂无
中图分类号
TP301 [理论、方法];
学科分类号
081202 ;
摘要
This paper studies how consumers' online search behavior may trigger pervasive and persistent online price dispersion We set up a game-theoretic model to examine the oligopolistic price competition, given the two unique features of online search, namely, the existence of a common search ordering and shoppers who have non-positive search cost We show that in absence of further heterogeneity, the unique online search behaviors alone can drive significant level of price dispersion. Specifically, we derive two-dimensional price dispersion. with both temporal fluctuation and spatial variation We show that equilibrium price expectation monotonically decreases in line with consumers' search ordering We also uncover a unique format of equilibrium pricing with stair-like sequence of price supports and localized price competition.
引用
收藏
页码:3600 / +
页数:2
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