Seminar
Private Prices, Common Norms
Marcel Preuss (Johnson Graduate School of Management - Cornell University)
- Date30 November 2026
- Time 14h15 - 15h30
- Room Auditorium 4
Résumé
Motivated by pricing in real estate services and other markets with costly quotes, we study how price norms can survive competition and negotiation. Consumers differ in their search costs and ability to negotiate with sellers. A range of common posted prices can be sustained in equilibrium. The same norm can prevail across markets with different consumer valuations or marginal costs, while identical markets can support different norms. Consumers’ expectations about rival offers govern both search and bargaining, allowing common quotes to coexist with negotiated discounts. A positive mass of consumers nevertheless pays the norm even when everyone can negotiate. We also show that higher norms can expand negotiated trade and increase both consumer surplus and total welfare.
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