Dynamic Model of the Price Dispersion of Homogeneous Goods
Journal of Economics, Management and Trade · pp. 120–131 · Published 22 May 2015
10.9734/BJEMT/2015/17849Abstract
Presented is an analytic microeconomic model of the temporal price dispersion of homogeneous goods in polypoly markets. This new approach is based on the idea that the price dispersion has its origin in the dynamics of the purchase process. The price dispersion is determined by the chance that demanded and supplied product units meet in a given price interval. It can be characterized by a fat-tailed Laplace distribution for short and by a lognormal distribution for long time horizons. Taking random temporal variations of demanded and supplied units into account both the mean price and also the standard deviation of the price dispersion are governed by a lognormal distribution. A comparison with empirical investigations confirms the model statements.
Cited by 1
Joachim Kaldasch · SSRN Electronic Journal · 2015
Related research
- Dynamic Model of Markets of Homogenous Non-durables — shares topic coverage
- Evaluation of Storage Control Points and Implicated Pathogens on Fast Moving Consumer Goods in Suburbs of South-western Nigeria — shares topic coverage
Article metrics
Real usage data collected on this platform.
0
Page views
0
PDF downloads
0
Outbound clicks
1
Citations
Views by country
Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".
No views recorded yet.
Traffic sources
Referring site, by host.
No traffic recorded yet.
Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.