AN EQUILIBRIUM SEARCH MODEL OF SYNCHRONIZED SALES* AN EQUILIBRIUM SEARCH MODEL OF SYNCHRONIZED SALES.

We demonstrate the existence of periodic nonstationary equilibria with self-generating cycles in a simple model of random search. Our results provide a theory of synchronized sales based on product market search by heterogeneous consumers. That is, our model explains how it can be optimal for all sellers to follow a repeated pattern of posting a high price for several periods and then posting a low price for one period. [ABSTRACT FROM AUTHOR]