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• W2127060820 abstract "Although it is an empirical regularity that in the trade of homogeneous goods there is persistent price dispersion and buyers search for low-priced items, theoretically one finds that in market equilibrium, when buyers have information limitations, are homogenous and optimisers (the neo-classical framework), these regularities do not occur. In the present work we introduce economic agents as having computational limitations in these neo-classical optimisation model, which is new in the literature. As a result of this alteration to the model, in market equilibrium we observe that there is an optimal level of computational cost and that there are both price dispersion and buyers search for low-priced items. JEL codes: D43, D83" @default.
• W2127060820 created "2016-06-24" @default.
• W2127060820 creator A5027944253 @default.
• W2127060820 date "2005-04-01" @default.
• W2127060820 modified "2023-10-12" @default.
• W2127060820 title "Market equilibrium with search and computational costs" @default.
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