On the Welfare Gains of Price Dispersion

Material TypeArticleLanguageEnglish
TitleOn the Welfare Gains of Price Dispersion Author(S)RICHARD DUTU (Author)
Abstract  Can price dispersion be associated with higher levels of welfare? To answer we compare two economies that differ only in the way prices are formed. In the first, sellers post a unique price–quantity pair, with no price dispersion. In the second, sellers post a quantity only and let prices be determined ex post by realized demand ...Paginationp757–786
Journal TitleJournal of Money, Credit, and Banking  
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