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Multiproduct Search and the Joint Search Effect

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  • Jidong Zhou

Abstract

This paper presents a sequential search model where consumers look for several products from multiproduct firms. Multiproduct search can significantly influence firms' pricing decisions. For example, it can make market prices decrease with search costs. Possible applications of the model are also discussed.

Suggested Citation

  • Jidong Zhou, 2014. "Multiproduct Search and the Joint Search Effect," American Economic Review, American Economic Association, vol. 104(9), pages 2918-2939, September.
    • Handle: RePEc:aea:aecrev:v:104:y:2014:i:9:p:2918-39
    Note: DOI: 10.1257/aer.104.9.2918
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    More about this item

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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