| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5078201 | International Journal of Industrial Organization | 2011 | 10 Pages |
Abstract
This paper presents an ordered search model in which consumers search both for price and product fitness. I construct an equilibrium in which there is price dispersion and prices rise in the order of search. The top firms in consumer search process, though charge lower prices, earn higher profits due to their larger market shares. Compared to random search, ordered search can induce all firms to charge higher prices and harm market efficiency.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Jidong Zhou,