This study examines the factors influencing price dispersion in Asaba's foodstuff market, focusing on consumer search behavior, market characteristics, and price transparency. Price dispersion—the variation in prices for identical products across sellers—is a persistent phenomenon in informal markets, posing challenges to consumer welfare and market efficiency. Using a descriptive survey design, data were collected from 98 respondents, including consumers and vendors, across major markets in Asaba. The findings reveal significant price variability for staple food items such as rice, tomatoes, and garri, with differences of 20–35% observed within the same market. Consumer search behavior, particularly active price comparison, was found to reduce price dispersion, as informed buyers secured better deals. Market characteristics, including vendor location and competition levels, also played a critical role, with high-traffic areas exhibiting higher prices. Price transparency, facilitated by digital tools and open pricing practices, further minimized disparities. Regression analysis confirmed that consumer search intensity, market competition, and transparency significantly predict price dispersion (Adjusted R² = 0.74, p < 0.001). The study concludes that enhancing consumer awareness, promoting digital price platforms, and improving market regulation can mitigate price variability. Recommendations include public sensitization campaigns, vendor accountability measures, and investments in market information systems. These interventions aim to foster equitable pricing and empower consumers in informal market settings. The findings contribute to the discourse on market efficiency and consumer economics in developing economies.