price dispersion

There is a difference between price dispersion and price discrimination.

There is some evidence of a shrinking of this online price dispersion, but it remains significant.

In most theoretical literature, price dispersion is argued as result from spatial difference and the existence of significant search cost.

Recently, work has also been done in the area of e-commerce, specifically the Semantic Web, and its effects on price dispersion.

In economics, price dispersion is variation in prices across sellers of the same item, holding fixed the item's characteristics.

Zvi finds that unperceived money growth does affect price dispersion, as the model predicts, while perceived money has no effect.

However, recent studies found a surprisingly high level of price dispersion online, even for standardized items such as books, CDs and DVDs.

Price dispersion can be viewed as a measure of trading frictions (or, tautologically, as a violation of the law of one price).

With RML, 5.2% reduction in price dispersion was observed across markets, comments London Business School study in 2010 / 11.

Thiel, Stuart E., "A New Model of Persistent Retail Price Dispersion" (July 6, 2005).

Hal Varian, an economist at U. C. Berkeley, argued in a 1980 article that price dispersion may be an intentional marketing technique to encourage shoppers to explore their options.

Dahlby, Bev and Douglas West, (1986), "Price Dispersion in an Automobile Market," Journal of Political Economy, 94(2): 418-438.

With search costs, there may be other equilibria apart from the competitive price - the monopoly price or even price dispersion may be equilibria as in the classic "Bargains and Rip-offs" model.

Specific research and analytical work covers fiscal policy issues, the challenge of jobless growth, money demand, food and fuel prices and inflation dynamics, dollarization, spatial price dispersion and market integration, and other areas.

The adoption of mobile phones by fishermen and wholesalers resulted in a dramatic reduction in price dispersion, the complete elimination of waste, and a near-perfect adherence to the Law of One Price.

With the development of internet and shopping agent programs, conventional wisdom tells that price dispersion should be alleviated and may eventually disappear in the online market due to the reduced search cost for both price and product features.

Venkatesh Shankar, Xing Pan, and Brian T. Ratchford, (2002), "Do Drivers of Online Price Dispersion Change as Online Markets Grow?

Among other things, it shows that optimal pricing strategies by firms and information "gatekeepers" can lead to equilibrium price dispersion when firms have identical costs, shoppers are well-informed, and firms' products are perceived to be identical.

Price dispersion, on the other hand, is best thought of as the outcome of many firms potentially charging different prices, where customers of one firm find it difficult to patronize (or are perhaps unaware of) other firms due to the existence of search costs.

Price dispersion measures include the range of prices, the percentage difference of highest and lowest price, the standard deviation of the price distribution, the variance of the price distribution, and the coefficient of variation of the price distribution.

Gupta, Tanya, and Abir Qasem,(2002), "Reduction of Price Dispersion through Semantic E-commerce," (in Workshop at WWW2002 International Workshop on the Semantic Web, Hawaii, May 7, 2002)