?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.title=The+dynamic+instability+of+dispersed+price+equilibria&rft.creator=Lahkar%2C+R.&rft.description=We+examine+whether+price+dispersion+is+an+equilibrium+phenomenon+or+a+cyclical+phenomenon.%0D%0AWe+develop+a+finite+strategy+model+of+price+dispersion+based+on+the+infinite+strategy%0D%0Amodel+of+Burdett+and+Judd+(1983).+Adopting+an+evolutionary+standpoint%2C+we+examine+the+stability%0D%0Aof+dispersed+price+equilibrium+under+perturbed+best+response+dynamics.+We+conclude+that%0D%0Awhen+both+sellers+and+consumers+participate+actively+in+the+market%2C+all+dispersed+price+equilibria%0D%0Aare+unstable+leading+us+to+interpret+price+dispersion+as+a+cyclical+process.+For+a+particular+case%0D%0Aof+the+model%2C+we+prove+the+existence+of+a+limit+cycle.&rft.publisher=ESRC+Centre+for+Economic+Learning+and+Social+Evolution&rft.date=2007-08&rft.type=Working+%2F+discussion+paper&rft.language=eng&rft.source=++++(ELSE+Working+Papers++269).+ESRC+Centre+for+Economic+Learning+and+Social+Evolution%3A+London%2C+UK.+(2007)+++++&rft.format=application%2Fpdf&rft.identifier=https%3A%2F%2Fdiscovery.ucl.ac.uk%2Fid%2Feprint%2F14430%2F1%2F14430.pdf&rft.identifier=https%3A%2F%2Fdiscovery.ucl.ac.uk%2Fid%2Feprint%2F14430%2F&rft.rights=open