Logo
Munich Personal RePEc Archive

Search and Competition Under Product Quality Uncertainty

Chen, Yongmin (2023): Search and Competition Under Product Quality Uncertainty.

Warning
There is a more recent version of this item available.
[thumbnail of MPRA_paper_116609.pdf]
Preview
PDF
MPRA_paper_116609.pdf

Download (223kB) | Preview

Abstract

I review models of consumer search and competition when product quality is uncertain and differs across firms. Although firms are vertically---and possibly also horizontally---differentiated, an appropriate symmetric price equilibrium with optimal consumer search can be neatly characterized. I propose a "random-quality" framework that unifies these models and discuss their insights on the operation of consumer search markets, focusing on (i) online advertising and search through platforms, (ii) the welfare effects of entry in search markets, and (iii) the role of quality observability under search frictions. I suggest directions for further research on these and related topics.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.