Malakhov, Sergey (2012): A paradox of little pre-purchase search for durables: the trade-off between prices, product lifecycle, and savings on purchases.
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The paper describes the microeconomic trade-off between prices, savings on purchases, and the time horizon of the consumption-leisure choice during the search for different products. When marginal costs of the search are equal to its marginal benefit, the time of search is proportional to products’ lifecycles and it is inversely proportional to starting prices.
|Item Type:||MPRA Paper|
|Original Title:||A paradox of little pre-purchase search for durables: the trade-off between prices, product lifecycle, and savings on purchases.|
|Keywords:||durables, time horizon, product lifecycle, saving on purchase, pre-purchase search|
|Subjects:||D - Microeconomics > D1 - Household Behavior and Family Economics > D11 - Consumer Economics: Theory
D - Microeconomics > D0 - General > D01 - Microeconomic Behavior: Underlying Principles
|Depositing User:||Sergey Malakhov|
|Date Deposited:||06. Nov 2012 16:39|
|Last Modified:||13. Feb 2013 01:45|
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A paradox of little pre-purchase search for durables: the trade-off between prices, product lifecycle, and savings on purchases. (deposited 15. Mar 2012 13:36)
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