scholarly journals The Role of Two Frictions in Geographic Price Dispersion: When Market Friction Meets Nominal Rigidity

2014 ◽  
Vol 2014 (219) ◽  
Author(s):  
Chi-Young Choi ◽  
◽  
Horag Choi ◽  
2010 ◽  
Vol 39 (3) ◽  
pp. 534-546 ◽  
Author(s):  
Tomislav Vukina ◽  
Xiaoyong Zheng

Using unique panel data on individual transactions between buyers and sellers in the spot market for live hogs, we found a large degree of intra-day price dispersion. Motivated by this empirical puzzle, we offer an explanation which is rooted in the bargaining with search theory. We formulate three hypotheses involving the role of farmers’ search cost, bargaining parties’ patience, and asymmetric information that we believe can explain the observed phenomenon. Empirical analysis shows strong support for all three of the stated theoretical predictions, indicating that the bargaining with search theory explains at least 31 percent of the observed intra-day price variation in this market.


2019 ◽  
Vol 122 (3) ◽  
pp. 1181-1206
Author(s):  
Espen R. Moen ◽  
Fredrik Wulfsberg ◽  
Øyvind Aas
Keyword(s):  

2019 ◽  
Vol 80 ◽  
pp. 173-187
Author(s):  
Michael D. Noel ◽  
Hongjie Qiang

2016 ◽  
Vol 9 (5) ◽  
pp. 568 ◽  
Author(s):  
Paul Scheffler ◽  
Holger Schiele ◽  
Philipp Horn
Keyword(s):  

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