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On Search Theory and Customers

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  • Huberto María Ennis

Abstract

This paper studies a simple model of decentralized exchange where consumers have to search for a seller that provides the services they want. Once a buyer finds one of these “good” stores, a customer relationship between the two develops. We study the factors on which the formation of this link depends and some of their properties and characteristics. We define a Customers Steady State Equilibrium and give conditions under which one of these exists. Finally, we show how these customer relationships impose a certain sluggishness on the economy as it responds to changes in the cost of production.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Huberto María Ennis, 1998. "On Search Theory and Customers," IIE, Working Papers 007, IIE, Universidad Nacional de La Plata.
    • Handle: RePEc:akh:wpaper:007
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    Other versions of this item:

    • Humberto M. Ennis, 2000. "On Search Theory and Customers," Económica, Instituto de Investigaciones Económicas, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0(1), pages 3-21, January-J.
    • Humberto M. Ennis, 2000. "On Search Theory and Customers," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0(1), pages 3-21, January-J.

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