INTRACITY PRICE DISPERSION: EVIDENCE FROM ISTANBUL

Abstract

The existence of price dispersion is one of the most well known principles of economic theory. Earlier studies concentrated on international purchasing power parity PPP deviations. In recent years several studies have examined price dispersion within a nation’s borders. In this article the price dispersion among the districts of Istanbul is analyzed by utilizing a data set containing microeconomic price levels from bazaars, convenience stores, and supermarkets. According to results of the study, the prices of homogenous products, except fruit and vegetables, vary less than the prices of differentiated goods as one might expect. Results also indicate that, type of the seller of the product effects price dispersion among the counties of Istanbul

Keywords

• Intracity Price Dispersion,Search Cost,Seller Heterogeneity,Istanbul

INTRACITY PRICE DISPERSION: EVIDENCE FROM İSTANBUL

Öz

The existence of price dispersion is one of the most well known principles of economic theory. Earlier studies concentrated on international purchasing power parity PPP deviations. In recent years several studies have examined price dispersion within a nation’s borders. In this article the price dispersion among the districts of Istanbul is analyzed by utilizing a data set containing microeconomic price levels from bazaars, convenience stores, and supermarkets. According to results of the study, the prices of homogenous products, except fruit and vegetables, vary less than the prices of differentiated goods as one might expect. Results also indicate that, type of the seller of the product effects price dispersion among the counties of Istanbul.

Anahtar Kelimeler

• Şehiriçi Fiyat Farklılaşması,Araştırma Maliyeti,Satıcı Heterojenliği,Istanbul

Kaynakça

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