MMTC resarch Seminar presented by Agostino Manduchi

MMTC resarch Seminar presented by Agostino Manduchi

Agostino is presenting the research titled as “Search and price dispersion with rationally inattentive buyers”.

In the study, Agostino investigates a model in which inattentive buyers can elicit price offers before purchasing a product. Inattentiveness follows from the cost of the attention that the buyers devote to their price-gathering problem. The only equilibrium of a version of the model with fully attentive buyers features the "Diamond paradox" of monopoly pricing, in which each buyer elicits a single offer. By contrast, the model of the paper features an active equilibrium with price dispersion, in which some buyers elicit multiple prices. The limiting behavior for a vanishing cost of attention is also considered.

The seminar will run in a hybrid format, you can join in room B6046 or on Zoom