Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaper › Journal article › Research › peer-review
Relative Price Dispersion : Evidence and Theory. / Kaplan, Greg; Menzio, Guido; Rudanko, Leena; Trachter, Nicholas.
In: American Economic Journal: Microeconomics, Vol. 11, No. 3, 08.2019, p. 68-124.Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaper › Journal article › Research › peer-review
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TY - JOUR
T1 - Relative Price Dispersion
T2 - Evidence and Theory
AU - Kaplan, Greg
AU - Menzio, Guido
AU - Rudanko, Leena
AU - Trachter, Nicholas
PY - 2019/8
Y1 - 2019/8
N2 - Relative price dispersion refers to persistent differences in the price that different retailers set for one particular good relative to the price they set for other goods. Relative price dispersion accounts for 30 percent of the overall variance of prices at which the same good is sold during the same week and in the same market. Relative price dispersion can be rationalized as the consequence of a pricing strategy used by sellers to discriminate between high-valuation buyers who need to make all of their purchases in one store, and low-valuation buyers who are able to purchase different items in different stores.
AB - Relative price dispersion refers to persistent differences in the price that different retailers set for one particular good relative to the price they set for other goods. Relative price dispersion accounts for 30 percent of the overall variance of prices at which the same good is sold during the same week and in the same market. Relative price dispersion can be rationalized as the consequence of a pricing strategy used by sellers to discriminate between high-valuation buyers who need to make all of their purchases in one store, and low-valuation buyers who are able to purchase different items in different stores.
KW - SEARCH
KW - MODEL
KW - CONSUMPTION
KW - COMPETITION
KW - MARKET
KW - DISTRIBUTIONS
KW - INVENTORIES
KW - INEQUALITY
KW - SALES
U2 - 10.1257/mic.20170126
DO - 10.1257/mic.20170126
M3 - Journal article
VL - 11
SP - 68
EP - 124
JO - American Economic Journal: Microeconomics
JF - American Economic Journal: Microeconomics
SN - 1945-7669
IS - 3
ER -