Ordered Search in Differentiated Markets
Abstract
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.Download Info
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13397.Length:
Date of creation: 13 Feb 2009
Date of revision:
Handle: RePEc:pra:mprapa:13397
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Related research
Keywords: non-random search; price dispersion; product differentiation;Other versions of this item:
- Zhou, Jidong, 2011. "Ordered search in differentiated markets," International Journal of Industrial Organization, Elsevier, vol. 29(2), pages 253-262, March.
- Jidong Zhou, 2009. "Ordered Search in Differentiated Markets," EERI Research Paper Series EERI_RP_2009_28, Economics and Econometrics Research Institute (EERI), Brussels.
- 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)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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"Advertising for Attention in a Consumer Search Model,"
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- Yongmin Chen & Chuan He, 2006.
"Paid Placement: Advertising and Search on the Internet,"
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06-02, NET Institute, revised Sep 2006.
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- Zhou, Jidong, 2009. "Prominence and Consumer Search: The Case With Multiple Prominent Firms," MPRA Paper 12554, University Library of Munich, Germany.
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"Prominence and Consumer Search,"
Economics Series Working Papers
379, University of Oxford, Department of Economics.
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- Wolinsky, Asher, 1986. "True Monopolistic Competition as a Result of Imperfect Information," The Quarterly Journal of Economics, MIT Press, vol. 101(3), pages 493-511, August.
- Marco A. Haan & Jose Luis Moraga-Gonzalez, 2009. "Advertising for Attention in a Consumer Search Model," Tinbergen Institute Discussion Papers 09-031/1, Tinbergen Institute.
- Perry, Motty & Wigderson, Avi, 1986. "Search in a Known Pattern," Journal of Political Economy, University of Chicago Press, vol. 94(1), pages 225-30, February.
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Moraga-Gonzalez, Jose L. & Petrikaite, Vaiva, 2011. "Consumer search costs and the incentives to merge under Bertrand Competition," IESE Research Papers D/934, IESE Business School.
- Jose Luis Moraga-Gonzalez & Vaiva Petrikaite, 2011. "Consumer Search Costs and the Incentives to merge under Bertrand Competition," Tinbergen Institute Discussion Papers 11-099/1, Tinbergen Institute.
- Jose L. Moraga-Gonzalez & Vaiva Petrikaite, 2012. "Search Costs, Demand-Side Economies and the Incentives to merge under Bertrand Competition," Tinbergen Institute Discussion Papers 12-017/1, Tinbergen Institute.
- Mark Armstrong & Jidong Zhou, 2011.
"Paying for Prominence,"
Economic Journal,
Royal Economic Society, vol. 121(556), pages F368-F395, November.
- Armstrong, Mark & Zhou, Jidong, 2011. "Paying for prominence," MPRA Paper 30529, University Library of Munich, Germany.
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