Exaggerated death of distance: Revisiting distance effects on regional price dispersions

► We investigate daily data of wholesale prices of agricultural products in Japan. ► We model the product delivery patterns and regional price differentials in the data. ► Ignoring delivery choices biases downwardly distance effects on price differentials. ► We estimate a sample-selection model imposing the model's theoretical restrictions. ► We find much larger estimates of the distance elasticity of price differential.