Information, Search, and Price Dispersion

摘要: We provide a unified treatment of alternative models information acquisition/transmission that have been advanced to rationalize price dispersion in online and offline markets for homogeneous products. These different frameworks -- which include sequential search, fixed sample clearinghouse reveal reductions (or the elimination of) consumer search costs need not reduce eliminate) dispersion. Our highlights "duality" between search-theoretic dispersion, shows how auction-theoretic tools may be used simplify (and even generalize) existing theoretical results. conclude with an overview burgeoning empirical literature. The evidence suggests both is sizeable, pervasive, persistent does purely stem from subtle differences firms' products or services.