Corpus ID: 155460362

Burdett-Judd Redux

@inproceedings{Albrecht2015BurdettJuddR,
  title={Burdett-Judd Redux},
  author={J. Albrecht},
  year={2015}
}
We consider a dynamic version of the Burdett-Judd model that features consumer heterogeneity in a market for a semi-durable good. We demonstrate the existence of nonstationary equilibria in which "normal" periods of high prices are followed by a single period of "sales" prices. 
Macroeconomics of bargain hunting