Consumer search and optimal information.

This article studies an information design problem in a sequential consumer search environment. Consumers, whose valuation of firms' products is uncertain, observe a noisy signal about the valuation upon being matched with a firm. The goal is to characterize those signal structures that maximize con...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 53; no. 2; pp. 386 - 404
Autores principales: Dogan, Mustafa, Hu, Ju
Formato: Artículo
Publicado: Wiley-Blackwell Jun2022
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Consumer search and optimal information.
      aug:
        au:
          Dogan, Mustafa
          Hu, Ju
        affil:
          MIT Sloan School of Management
          Peking University
      su:
        Information design
        Statics
        Valuation
        Consumers' surplus
      sug:
        subj:
          All Other Professional, Scientific, and Technical Services
          Information design
          Statics
          Valuation
          Consumers' surplus
      ab: This article studies an information design problem in a sequential consumer search environment. Consumers, whose valuation of firms' products is uncertain, observe a noisy signal about the valuation upon being matched with a firm. The goal is to characterize those signal structures that maximize consumer surplus. We show that the consumer‐optimal signal structure can be found within the class of conditional unit‐elastic demand signal distributions. A rich set of properties and comparative statics of the consumer‐optimal signal distributions are also derived.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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