Directed search, coordination failure, and seller profits: an experimental comparison of posted pricing with single and multiple prices

Anbarci, Nejat and Feltovich, Nick 2013, Directed search, coordination failure, and seller profits: an experimental comparison of posted pricing with single and multiple prices, International economic review, vol. 54, no. 3, pp. 873-884.

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Title Directed search, coordination failure, and seller profits: an experimental comparison of posted pricing with single and multiple prices
Author(s) Anbarci, Nejat
Feltovich, Nick
Journal name International economic review
Volume number 54
Issue number 3
Start page 873
End page 884
Total pages 12
Publisher Wiley-Blackwell Publishing
Place of publication Hoboken, New Jersey
Publication date 2013-08
ISSN 0020-6598
Keyword(s) multi-buyer prices
single-buyer prices
market frictions
Summary We experimentally examine posted pricing and directed search. In one treatment, capacity-constrained sellers post fixed prices, which buyers observe before choosing whom to visit. In the other, firms post both “single-buyer” (applied when one buyer visits) and “multibuyer” (when multiple buyers visit) prices. We find, based on a 2 × 2 (two buyers and two sellers) market and a follow-up experiment with 3 and 2 × 3 markets, that multibuyer prices can be lower than single-buyer prices or prices in the one-price treatment. Also, allowing the multibuyer price does not affect seller profits and increases market frictions.
Language eng
Field of Research 140206 Experimental Economics
Socio Economic Objective 910299 Microeconomics not elsewhere classified
HERDC Research category C1 Refereed article in a scholarly journal
HERDC collection year 2013
Copyright notice ©2013, Wiley-Blackwell Publishing
Persistent URL http://hdl.handle.net/10536/DRO/DU:30056346

Document type: Journal Article
Collection: School of Accounting, Economics and Finance
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