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| Benjamin Eden |
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| ''PRICE DISPERSION AND DEMAND UNCERTAINTY: EVIDENCE FROM US SCANNER DATA'' |
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| I use a flexible price version of the Prescott (1975) hotels model to explain variations in price dispersion across goods sold by supermarkets in Chicago. The main finding is that price dispersion measures are positively correlated with proxies for demand uncertainty. I also find that price dispersion measures are negatively correlated with the average price but are not negatively correlated with the revenues from selling the good (across stores and weeks) and with the number of stores that sell the good. |
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| Keywords: |
JEL: D4 - Market Structure and Pricing: General
L0 - Industrial Organization: General |
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| Manuscript Received : Sep 27 2013 | | Manuscript Accepted : Oct 03 2013 |
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