Please use this identifier to cite or link to this item: http://hdl.handle.net/2123/6440

Title: Equilibrium Price Dispersion: A Model of Intermediated Search with Repeated Interaction
Authors: Cusbert, Thomas
Discipline of Economics
Issue Date: 2008
Abstract: This thesis develops a model in which homogeneous producers and merchants interact repeatedly in a search market. Merchants are able to reduce the cost of search by o ering trading certainty to pro- ducers with whom they have a preexisting relationship. Equilibria are characterised in Markov strategies, and it is found that price- dispersed equilibria exist in asymmetric strategies. Conditions in which a price-dispersed equilibrium can be welfare improving com- pared to a single-price equilibrium are found, and two extensions to the basic model are provided.
URI: http://hdl.handle.net/2123/6440
Department/Unit/Centre: Discipline of Economics
Appears in Collections:Honours Theses - School of Economics
Honours Theses

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