We develop a simple model with heterogeneous agents and search frictions to study how increases in matching intensity between buyers and retailers as a result of e‐commerce determine the level… Click to show full abstract
We develop a simple model with heterogeneous agents and search frictions to study how increases in matching intensity between buyers and retailers as a result of e‐commerce determine the level of income inequality among retailers. Our findings indicate that a reduction in search frictions leads to higher inequality and induces buyers to purchase goods and services only from specialized retailers.
               
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