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Burdett-Judd Redux

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  • James Albrecht

    (Georgetown University)

Abstract

We consider a dynamic version of the Burdett-Judd model that features consumer heterogeneity in a market for a semi-durable good. We demonstrate the existence of nonstationary equilibria in which "normal" periods of high prices are followed by a single period of "sales" prices.

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  • James Albrecht, 2015. "Burdett-Judd Redux," 2015 Meeting Papers 985, Society for Economic Dynamics.
    • Handle: RePEc:red:sed015:985
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    References listed on IDEAS

    as
    1. James Albrecht & Fabien Postel‐Vinay & Susan Vroman, 2013. "An Equilibrium Search Model Of Synchronized Sales," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(2), pages 473-493, May.
    2. Burdett, Kenneth & Judd, Kenneth L, 1983. "Equilibrium Price Dispersion," Econometrica, Econometric Society, vol. 51(4), pages 955-969, July.
    3. repec:hal:spmain:info:hdl:2441/11qd47gdim8v799d6edke9i68q is not listed on IDEAS
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