search query: @author McAfee, R. / total: 5
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| Author: | McAfee, R. |
| Title: | Multiproduct equilibrium price dispersion |
| Journal: | Journal of Economic Theory
1995 : OCT, VOL. 67:1, p. 83-105 |
| Index terms: | ECONOMICS THEORIES PRICES |
| Language: | eng |
| Abstract: | The model of Burdett and Judd (1993) is generalized to the case of many goods. Consumers choose the best price observed for each good. There are two classes of equilibria, those that involve constant expected profit for each good independently of price and those with increasing profits for each good in price. A continuum of the latter type always exists. These equilibria are qualitatively different than the unique equilibrium of the single-good case. The textbook "Law of One Price" is empirically irrelevant. |
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