Zhou, Jidong (2009): Ordered Search in Differentiated Markets.
Download (239kB) | Preview
This paper presents an ordered search model in which consumers search both for price and product fitness. We show that there is price dispersion in equilibrium and prices rise in the order of search. The top firms in consumer search order, though charge lower prices, earn higher profits due to their larger market shares.
|Item Type:||MPRA Paper|
|Original Title:||Ordered Search in Differentiated Markets|
|Keywords:||non-random search, price dispersion, product differentiation|
|Subjects:||L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search ; Learning ; Information and Knowledge ; Communication ; Belief ; Unawareness
D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection
|Depositing User:||Jidong Zhou|
|Date Deposited:||14. Feb 2009 15:37|
|Last Modified:||12. Feb 2013 10:20|
Anderson, S., and R. Renault (1999): “Pricing, Product Diversity, and Search Costs: A Bertrand-Chamberlin-Diamond Model,” RAND Journal of Economics, 30(4), 719—735.
Arbatskaya, M. (2007): “Ordered Search,” RAND Journal of Economics, 38(1), 119—126.
Armstrong, M., J. Vickers, and J. Zhou (2007): “Prominence and Consumer Search,” RAND Journal of Economics, forthcoming.
Athey, S., and G. Ellison (2007): “Position Auctions with Consumer Search,” mimeo.
Chen, Y., and C. He (2006): “Paid Placement: Advertising and Search on the Internet,” mimeo.
Hann, M., and J. Moraga-Gonzalez (2007): “Advertising for Attention,” mimeo.
Hortaçsu, A., and C. Syverson (2004): “Product Differentiation, Search Costs, and Competition in the Mutual Fund Industry: A Case Study of S&P 500 Index Funds,” Quarterly Journal of Economics, 119(2), 403—456.
Kohn, M., and S. Shavell (1974): “The Theory of Search,” Journal of Economic Theory, 9(2), 93—123.
Perry, M., and A. Wigderson (1986): “Search in a Known Pattern,” Journal of Political Economy, 94(1), 225—230.
Wolinsky, A. (1986): “True Monopolistic Competition as a Result of Imperfect Information,” Quarterly Journal of Economics, 101(3), 493—511.