Prices and heterogeneous search costs.
We study price formation in a model of consumer search for differentiated products in which consumers have heterogeneous search costs. We provide conditions under which a pure-strategy symmetric Nash equilibrium exists and is unique. Search costs affect two margins-the intensive search margin (or se...
| Published in: | RAND Journal of Economics (Wiley-Blackwell) Vol. 48; no. 1; pp. 125 - 147 |
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| Main Authors: | , , |
| Format: | Article |
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Wiley-Blackwell
Spring2017
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=121147683&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 121147683 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 07416261 56RJ jtl: RAND Journal of Economics (Wiley-Blackwell) issn: 07416261 maglogo: Y pubinfo: dt: Spring2017 vid: 48 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 121147683 10.1111/1756-2171.12170 ppf: 125 ppct: 22 formats: fmt: – @attributes: type: T – @attributes: type: P size: 402KB tig: atl: Prices and heterogeneous search costs. aug: au: Moraga‐González, José Luis Sándor, Zsolt Wildenbeest, Matthijs R. affil: Vrije Universiteit Amsterdam and University of Groningen Sapientia University Miercurea Ciuc Indiana University su: United States Electronic commerce Consumer behavior Investments Pricing Nash equilibrium Mutual funds Shopping sug: subj: Electronic commerce Consumer behavior Investments United States Miscellaneous Financial Investment Activities Investment Advice Portfolio Management Other Financial Vehicles All other non-depository credit intermediation Open-End Investment Funds All other financial investment activities Electronic Shopping Electronic shopping and mail-order houses Pricing Nash equilibrium Mutual funds Shopping ab: We study price formation in a model of consumer search for differentiated products in which consumers have heterogeneous search costs. We provide conditions under which a pure-strategy symmetric Nash equilibrium exists and is unique. Search costs affect two margins-the intensive search margin (or search intensity) and the extensive search margin (or the decision to search rather than to not search at all). These two margins affect the elasticity of demand in opposite directions and whether lower search costs result in higher or lower prices depends on the properties of the search cost density. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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