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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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    References listed on IDEAS

    as
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    7. 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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    9. Steven Salop & Joseph Stiglitz, 1977. "Bargains and Ripoffs: A Model of Monopolistically Competitive Price Dispersion," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 44(3), pages 493-510.
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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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