Inflation and quality dispersion
Data(s) |
01/09/2013
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Resumo |
One questionable aspect of price posting with directed search is the strong commitment by sellers to commit to the advertised terms of trade. In this paper I explore the welfare implications of assuming that sellers cannot commit and vary the quality of their output ex post according to realized demand. I show that such lack of commitment translates into lower participation by buyers, lower average quality, and a consumption-equivalent loss of 0.3% of annual GDP. |
Identificador | |
Idioma(s) |
eng |
Publicador |
Cambridge University Press |
Relação |
http://dro.deakin.edu.au/eserv/DU:30049756/dutu-inflationandquality-2013.pdf http://dx.doi.org/10.1017/S1365100512000284 |
Palavras-Chave | #directed search #welfare #quality #commitment |
Tipo |
Journal Article |