This paper studies a dynamic model of perfectly competitive price posting under demand uncertainty. Firms must produce output in advance. After observing aggregate sales in prior periods, firms post prices for their unsold output. In each period, the demand of a new batch of consumers is randomly activated. Existing customers who have not yet bought and then new customers arrive at the market in random order, observe the posted prices, and either purchase at the lowest available price or delay their purchase decision.
MLA
Deneckere, Raymond, and James Peck. “Dynamic Competition With Random Demand and Costless Search: A Theory of Price Posting.” Econometrica, vol. 80, .no 3, Econometric Society, 2012, pp. 1185-1247, https://doi.org/10.3982/ECTA8806
Chicago
Deneckere, Raymond, and James Peck. “Dynamic Competition With Random Demand and Costless Search: A Theory of Price Posting.” Econometrica, 80, .no 3, (Econometric Society: 2012), 1185-1247. https://doi.org/10.3982/ECTA8806
APA
Deneckere, R., & Peck, J. (2012). Dynamic Competition With Random Demand and Costless Search: A Theory of Price Posting. Econometrica, 80(3), 1185-1247. https://doi.org/10.3982/ECTA8806
By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device. Cookies are used to optimize your experience and anonymously analyze website performance and traffic.