Malakhov, Sergey (2012): A paradox of little pre-purchase search for durables: the trade-off between prices, product lifecycle, and savings on purchases.
This is the latest version of this item.
Download (303Kb) | Preview
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|
1. Grewal, D., Marmorstein, H. (1992) “The Value of Time Spent in Price-Comparison Shopping: Survey and Experimental Evidence”. Journal of Consumer Research, 19 (1), pp.52-61.
2. Grewal, D., Marmorstein, H. (1994) “Market Price Variation, Perceived Price Variation, and Consumers’ Price Search Decisions for Durable Goods.” Journal of Consumer Research, 21 (3), 453-460
3. Lindsey-Mullikin, J., Grewal, D. (2006) “Imperfect Information: The Persistence of Price Dispersion on the Web” Journal of the Academy of Marketing Science, 34 (2), 236-243
4. Malakhov, S. (2011a) ”Toward a New Synthesis of Neoclassical Paradigm and Search-Satisficing Concept” 2011 IAREP-SABE Annual Conference, Exeter.
5. Malakhov, S. (2011b) “Optimal Sequential Search and Optimal Consumption Leisure Choice.” Economic Policy, 6(6), Moscow, ANE-IEP, pp.148-168; available at: http://works.bepress.com/sergey_malakhov
6. Stigler , G. (1950) “The Development of Utility Theory. II” The Journal of Political Economy, Vol. 58, No. 5, 373-396
7. Stigler, G.(1961) “The Economics of Information” Journal of Political Economy, 69(3), 213-225.
8. Thaler, R. (1980) “Toward a Positive Theory of Consumer Choice”. Journal of Economic Behavior and Organization, 1, 39-60.
9. Thaler, R. (1987) “The Psychology of Choice and the Assumptions of Economics” in Roth, A.E. “Laboratory experimentation in economics: six points of view”. Cambridge University Press, 99-130.
Available Versions of this Item
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)
- A paradox of little pre-purchase search for durables: the trade-off between prices, product lifecycle, and savings on purchases. (deposited 06. Nov 2012 16:39) [Currently Displayed]