A paradox of little pre-purchase search for durables: the trade-off between prices, product lifecycle, and savings on purchases
AbstractThe 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 starting prices.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 37376.
Date of creation: 11 Mar 2012
Date of revision:
durables; time horizon; product lifecycle; saving on purchase; pre-purchase search;
Find related papers by JEL classification:
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
This paper has been announced in the following NEP Reports:
Please 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.:
- George J. Stigler, 1950.
"The Development of Utility Theory. II,"
Journal of Political Economy, University of Chicago Press,
University of Chicago Press, vol. 58, pages 373.
- George J. Stigler, 1950. "The Development of Utility Theory. I," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 58, pages 307.
- Malakhov, Sergey, 2012. "Satisficing decision procedure and optimal consumption-leisure choice," MPRA Paper 38964, University Library of Munich, Germany.
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