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- W2020102904 abstract "Abstract We consider an evolutionary model where sellers charge prices for a homogeneous commodity and where consumers, while incompletely informed about prices, decide from which seller they buy the commodity. Sellers revise their decisions by way of imitation and experimentation and consumers engage in search. Consumers are sluggish if they do not learn sellers' prices with some positive probability. Only if consumers are not sluggish at all does economic evolution unambiguously support Bertrand equilibrium. If consumers are sluggish, firms charge other prices as well and the evolutionary process displays a property similar to parallel pricing. If consumers are extremely sluggish, evolution picks up monopoly pricing. Journal of Economic Literature Classification Numbers: C7, D43, D83, L13." @default.
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- W2020102904 date "2002-07-01" @default.
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- W2020102904 title "Sluggish Consumers: An Evolutionary Solution to the Bertrand Paradox" @default.
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- W2020102904 doi "https://doi.org/10.1006/game.2001.0902" @default.
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