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Stable Price Dispersion under Heterogeneous Buyer Consideration

Year: 2026

Type: article

Abstract: ABSTRACT We study the pricing of homogeneous products sold to customers who consider different sets of suppliers. We identify prices that are stable in the sense that no firm wishes to undercut a rival or to raise its price when rivals are able to respond by offering special deals. We derive stable and dispersed prices across several price‐consideration specifications. We contrast the implications against those of conventional approaches.

Source: The RAND Journal of Economics

DOI: 10.1111/1756-2171.70018

Authors: David P. Myatt, David Ronayne

Institutions: London Business School, European School of Management and Technology

Language: English

Topic: Merger and Competition Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,400

OpenAlex ID: W7124980365

FWCI: 14.15

Cites: 86

Cited by: 2

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