<p>A little empirical evidence for your first point can be found in</p>

<ul>
<li>Erik Brynjolfsson &amp; Michael D. Smith (2000): "<a href="http://ebusiness.mit.edu/erik/frictionless.pdf" rel="nofollow">Frictionless Commerce?
A Comparison of Internet and Conventional Retailers</a>", Management
Science, 46(4), 563–585.</li>
</ul>

<p>They look at the markets for books and for CDs both online and offline and estimate the price distributions. Whilst they look at price changes, they do not present data on the change in price distributions over time.</p>

CC BY-SA 3.0
2015-01-31T16:35:35.610Z
2015-01-31T16:35:35.610Z
Ubiquitous
<p>I'm looking for as many empirical "stylized facts" about price dispersion (in products markets) in the idea of Burdett and Judd (1983) as possible. </p>

<p>For example, </p>

<ul>
<li>how high is the variance of price dispersion over different markets? </li>
<li>Is there a time trend in price dispersion?</li>
<li>How does price dispersion vary over the business cycle?</li>
</ul>

<p>For the last question, I only found Cornia et al (2011), who show that it is very pro-cyclical for airlines - probably not the most generalizable result.</p>

<industrial-organisation><reference-request>
Stylized Facts: Price Dispersion
FooBar
# Stylized Facts: Price Dispersion

(Asked by: username_0 on 2015-01-31)

I'm looking for as many empirical "stylized facts" about price dispersion (in products markets) in the idea of Burdett and Judd (1983) as possible.

For example,

* how high is the variance of price dispersion over different markets?
* Is there a time trend in price dispersion?
* How does price dispersion vary over the business cycle?

For the last question, I only found Cornia et al (2011), who show that it is very pro-cyclical for airlines - probably not the most generalizable result.

**Tags:** industrial-organisation, reference-request


---

## 1 answers

### Answer by username_1 on 2015-01-31. Score: 1

A little empirical evidence for your first point can be found in

* Erik Brynjolfsson & Michael D. Smith (2000): "[Frictionless Commerce?
  A Comparison of Internet and Conventional Retailers](http://ebusiness.mit.edu/erik/frictionless.pdf)", Management
  Science, 46(4), 563–585.

They look at the markets for books and for CDs both online and offline and estimate the price distributions. Whilst they look at price changes, they do not present data on the change in price distributions over time.


---

