Consumer search with observational learning.
Abstract: This article studies observational learning in a consumer search environment. Consumers observe the purchasing decision of a predecessor with similar preferences. Consumers rationally emulate by initiating their search at the firm from which their predecessor purchased, free‐riding on sear...
| Publicado en: | RAND Journal of Economics (Wiley-Blackwell) Vol. 49; no. 1; pp. 224 - 254 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Spring2018
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=127932164&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 127932164 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: Spring2018 vid: 49 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 127932164 10.1111/1756-2171.12224 ppf: 224 ppct: 30 formats: fmt: – @attributes: type: T – @attributes: type: P size: 392KB tig: atl: Consumer search with observational learning. aug: au: Garcia, Daniel Shelegia, Sandro affil: University of Vienna Universitat Pompeu Fabra su: Consumer behavior Consumer preferences Economic competition Market share Direct costing sug: subj: Consumer behavior Consumer preferences Economic competition Market share Direct costing ab: Abstract: This article studies observational learning in a consumer search environment. Consumers observe the purchasing decision of a predecessor with similar preferences. Consumers rationally emulate by initiating their search at the firm from which their predecessor purchased, free‐riding on search effort, and reacting less to price changes. Prices are nonmonotone in search costs and may be as low as marginal costs. We discuss several extensions and show that the effect of emulation on prices is stronger when (i) the number of firms increases, (ii) consumers' first visits are more elastic with respect to market shares, and (iii) prices are adjusted more frequently. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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