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Active search in the Diamond search model

Author

Listed:
  • Arthur Fishman

    (Ariel University and Bar Ilan University)

Abstract

It is shown that introducing both consumer and firm heterogeneity into Diamond's original search model leads to both price dispersion and active consumer search in equilibrium.

Suggested Citation

  • Arthur Fishman, 2021. "Active search in the Diamond search model," Economics Bulletin, AccessEcon, vol. 41(3), pages 2127-2132.
    • Handle: RePEc:ebl:ecbull:eb-21-00503
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2021/Volume41/EB-21-V41-I3-P183.pdf
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    References listed on IDEAS

    as
    1. Asher Wolinsky, 1986. "True Monopolistic Competition as a Result of Imperfect Information," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(3), pages 493-511.
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    4. Cabral, Luís & Gilbukh, Sonia, 2020. "Rational buyers search when prices increase," Journal of Economic Theory, Elsevier, vol. 187(C).
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    7. Dana, James D, Jr, 1994. "Learning in an Equilibrium Search Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(3), pages 745-771, August.
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    9. Janssen, Maarten C.W. & Parakhonyak, Alexei & Parakhonyak, Anastasia, 2017. "Non-reservation price equilibria and consumer search," Journal of Economic Theory, Elsevier, vol. 172(C), pages 120-162.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Diamond paradox; active search; price dispersion;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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    Access and download statistics

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