Price Dispersion The commonly agreed upon"law of one price stating that identical products sold at the same location at a given time period must be sold for Identical prices is actually rarely observed in any market. Most retail markets are instead characterized by a rather large degree of price dispersion The cost of obtaining price information might be one reason for price dispersion in homogeneous product marketPrice Dispersion • The commonly agreed upon "law of one price" stating that identical products sold at the same location at a given time period must be sold for identical prices is actually rarely observed in any market. Most retail markets are instead characterized by a rather large degree of price dispersion. • The cost of obtaining price information might be one reason for price dispersion in homogeneous product market