Journal Article A Note on the Existence of Single Price Equilibrium Price Distributions in Sequential Search Models Get access William P. Rogerson William P. Rogerson Northwestern University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 54, Issue 2, April 1987, Pages 339–342, https://doi.org/10.2307/2297522 Published: 01 April 1987 Article history Received: 01 May 1986 Accepted: 01 November 1986 Published: 01 April 1987

Two previous models of the dissipation of profits generated by the use of quality-guaranteeing prices assumed that pro fits were dissipated through investment in brand-name capital and ent ry. The model of this paper allows both possibilities. It is shown th at both types of dissipation will, in general, occur and that brand-n ame investment will dissipate a greater share of profits as the elast icity of consumer response to brand-name investment grows larger.