Working Paper No. 205

The Economics of Learning: Price Formation when Acquisition of Information is Possible but Costly


This paper presents some analyses of what would be the outcome of a price formation process in the presence of information costs. First, we examine the equilibria which obtain in search markets where consumers are uninformed about prices but informed about the distribution of prices. Second, we examine the case when consumers are not informed about the distribution of prices, and conclude that the equilibrium might differ considerably. Third, we show that in the case when firms are not informed about their profit opportunities, and therefore have to undertake experiments to find these out, a price dispersion equilibrium is locally stable, given reasonably rational experimental procedures.

Interdisciplinary European Studies

Trust in the European Union in Challenging Times

2018-Trust-in-the-European-Union-by-Oxelheim.jpg

This is the first book in the Interdisciplinary European Studies collection. This volume provides an interdisciplinary perspective on trust in the EU from the vantage point of political science, law and economics. Lars Oxelheim, Lund University and affiliated to IFN, is one of the authors.

Events

Seminars organized by IFN

 

To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

Academically oriented seminars are most of the time held on Wednesdays at 10 am. At these events researchers from IFN and other institutions present their research.

In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

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