Pricing, price dispersion, and information: The discount brokerage industry


Journal Article

The paper provides an empirical analysis of the pricing behavior of firms within the discount brokerage industry, with emphasis on testing the role of costly information in affecting prices. Several empirical tests are performed that indicate that prices in this industry respond in ways hypothesized by theoretical models of markets operating under conditions of imperfect information. The industry is characterized by a wide degree of price dispersion that does not appear to simply reflect quality differences among firms. In addition, the variance of prices across geographic markets is associated with variables that theoretically should affect the levels of consumer information in those markets. © 1986.

Full Text

Duke Authors

Cited Authors

  • Mitchell, WE; Sorensen, RL

Published Date

  • January 1, 1986

Published In

Volume / Issue

  • 38 / 4

Start / End Page

  • 273 - 282

International Standard Serial Number (ISSN)

  • 0148-6195

Digital Object Identifier (DOI)

  • 10.1016/0148-6195(86)90001-9

Citation Source

  • Scopus