Dynamic Competition with Random Demand and Costless Search: A Theory of Price Posting
2009/03/17
研討會日期 : 2009-03-17
時間 : 15:30
主講人 : Professor Raymond Deneckere
地點 : B110
演講者簡介 : Professor Raymond Deneckere為Ph.D. in Economics，University of Wisconsin-Madison (1983)。目前為Professor，University of Wisconsin-Madison。其主要研究領域為Microeconomic Theory、Industrial Organization。
演講摘要 : We introduce a dynamic model of perfectly competitive price posting. Output must be produced before demand uncertainty is resolved, and firms compete by posting prices on each unit of unsold output. Unlike the static version of the model (see Prescott (1975)), firms may change their prices after each round. Consumers costlessly observe all available prices, and either purchase at the lowest available price or delay their purchase decision, hoping for a lower price. The equilibrium is Pareto optimal, and consumers endogenously sort themselves efficiently, with the highest valuations purchasing first. Transactions prices rise continuously, and then jump down to the Walrasian equilibrium price, given the output and realized demand. Thus, the economy gropes its way to the Walrasian equilibrium, with actual transactions and fully rational behavior occurring as the price adjusts.
