Ordered Search in Differentiated Markets
AbstractThis 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 13397.
Date of creation: 13 Feb 2009
Date of revision:
non-random search; price dispersion; product differentiation;
Other versions of this item:
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-02-22 (All new papers)
- NEP-COM-2009-02-22 (Industrial Competition)
- NEP-MIC-2009-02-22 (Microeconomics)
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