The Diamond paradox (Diamond, 1971) asserts that in a market for a homogeneous good, if all consumers have positive search costs and search sequentially, then the unique equilibrium price is the monopoly price. I show that any finitely repeated version of this search game may support competitive prices.
- Diamond paradox
- Finitely repeated games
- Sequential search
All Science Journal Classification (ASJC) codes
- Economics and Econometrics