Durrmeyer Lab

Research focus

ERC Starting Grant · 2019

Understanding price dispersion: new structural models of price discrimination and applications

Structural models of demand and supply in differentiated product markets are widely used for policy evaluation and in antitrust. They typically consider firms set uniform prices and fail to explain price dispersion within products. Yet, it is common that the same good is purchased at different prices and this has major consequences for consumers that standard models cannot analyze. This proposal extends standard models to incorporate price dispersion. These new structural models are used to shed lights on the sources of price dispersion, their importance and evaluate the distributional impacts and profitability of price dispersion on important markets (automobile, grocery items and online…

From the public funding record at EU CORDIS. Describes the funded project, not the reviews below.