@techreport{NBERw8737,
 title = "Existence and Persistence of Price Dispersion: an Empirical Analysis",
 author = "Saul Lach",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "8737",
 year = "2002",
 month = "January",
 URL = "http://www.nber.org/papers/w8737",
 abstract = {Using a unique data set on store-level monthly prices of four homogenous products sold in Israel, I study the existence and characteristics of the dispersion of prices across stores, as well as its persistence over time. I find that price dispersion prevails even after controlling for observed and unobserved product heterogeneity. Moreover, intra-distribution mobility is significant: stores move up and down the cross-sectional price distribution. Thus, consumers cannot learn about stores that consistently post low prices. As a consequence, price dispersion does not disappear and persists over time as predicted by Varian's (1980) model of sales.},
}