Non-reservation price equilibria and consumer search
(2017)
Journal Article
Janssen, M. C., Parakhonyak, A., & Parakhonyak, A. (2017). Non-reservation price equilibria and consumer search. Journal of Economic Theory, 172, 120-162. https://doi.org/10.1016/j.jet.2017.08.003
Reservation price equilibria (RPE) do not accurately assess market power in consumer search markets. In most search markets, consumers do not know important elements of the environment in which they search (such as, for example, firms' cost). We argu... Read More about Non-reservation price equilibria and consumer search.