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A paradox of little pre-purchase search for durables: the trade-off between prices, product lifecycle, and savings on purchases.

Malakhov, Sergey (2012): A paradox of little pre-purchase search for durables: the trade-off between prices, product lifecycle, and savings on purchases. Forthcoming in: International Journal of Social Science Research , Vol. 2, No. 2 (2014)

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Abstract

The paper is included as Part 5 in the forthcoming "Satisficing Decision Procedure and Optimal Consumption-Leisure Choice'. 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 willingness to pay.

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