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Stable Price Dispersion under Heterogeneous Buyer Consideration

David P. Myatt & David Ronayne

RAND Journal of Economics2026https://doi.org/10.1111/1756-2171.70018article
AJG 4ABDC A*
Weight
0.50

Abstract

We study the pricing of homogeneous products sold to customers who consider different sets of suppliers. We identify prices that are stable in the sense that no firm wishes to undercut a rival or to raise its price when rivals are able to respond by offering special deals. We derive stable and dispersed prices across several price‐consideration specifications. We contrast the implications against those of conventional approaches.

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https://doi.org/https://doi.org/10.1111/1756-2171.70018

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@article{david2026,
  title        = {{Stable Price Dispersion under Heterogeneous Buyer Consideration}},
  author       = {David P. Myatt & David Ronayne},
  journal      = {RAND Journal of Economics},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/1756-2171.70018},
}

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Stable Price Dispersion under Heterogeneous Buyer Consideration

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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