Published April 1982
| public
Journal Article
A generalized model of pricing for homogeneous goods under imperfect information
- Creators
- Sadanan, Asha
- Wilde, Louis L.
Abstract
This paper generalizes the model developed in Wilde and Schwartz (1979) to allow downward sloping demand curves and u-shaped average cost curves. It shows that the basic qualitative conclusions of Wilde and Schwartz still hold. Moreover, it shows that the critical proportion of comparison shoppers needed to generate a competitive equilibrium falls as demand becomes more elastic or average costs become more inelastic. Finally, it shows that when imperfect information generates non-competitive outcomes, they are bounded below, in welfare terms, by the monopolistically competitive equilibrium.
Additional Information
© 1982 The Society for Economic Analysis Limited. First version received June 1981; final version accepted November 1981 (Eds.). Formerly SSWP 386.Additional details
- Eprint ID
- 83614
- DOI
- 10.2307/2297272
- Resolver ID
- CaltechAUTHORS:20171130-162319362
- Created
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2017-12-01Created from EPrint's datestamp field
- Updated
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2021-11-15Created from EPrint's last_modified field