Graduate School of Public Policy

On October 28, 2016 a research presentation was delivered by Dr. Omer F. Baris, Assistant Professor of GSPP (Ph.D in Economics). This presentation gave a start to the seminar series of GSPP Faculty. Dr. Omer F. Baris presented his research on ‘Price Dispersion and Optimal Price Categories with Limited Memory Consumers’ in collaboration with Dr. Levent Kutlu from Department of Economics, Georgia Institute of Technology, USA. Examining the effects of limited consumer memory on the pricing strategies of competing firms, it was shown that the observed price dispersion may be due to the consumers’ inability to allocate their memory optimally. Optimal allocation of consumers’ memory for more than two price categories reduces the likelihood of price dispersion and a single market price prevails.