A Generalized Model of Advertised Sales

• 成果类型: Article
• 署名作者: Shelegia, Sandro; Wilson, Chris M.
• 署名单位: Pompeu Fabra University; Barcelona School of Economics; Loughborough University
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• DOI: 10.1257/mic.20170152
• 发表日期: 2021
• 页码: 195-223
• 关键词: price dispersion; consumer search; MARKET; equilibrium; INFORMATION; COMPETITION; internet; number; complexity; COSTS

摘要

To better understand temporary price reductions or sales, this paper presents a generalized clearinghouse framework of advertised sales and explores some applications. By viewing the firms as competing in utility and amending the conventional tiebreak rule, we allow for multiple dimensions of firm heterogeneity in complex market environments. Moreover, we (i) provide original insights into the number and types of firms that use sales, (ii) offer new results on how firm heterogeneity affects market outcomes, (iii) extend a common empirical cleaning procedure, and (iv) analyze a family of activities in sales markets, including persuasive advertising and obfuscation.