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Search and categorization

Author

Listed:
  • Fershtman, Chaim
  • Fishman, Arthur
  • Zhou, Jidong

Abstract

The internet has not only reduced consumer search costs, but has also enabled more efficient and sophisticated search procedures. For example, online consumers can streamline their search process if appropriately defined categories of products and services are available. This paper proposes a search model with product categories where consumers choose which categories to search and firms respond to such more targeted search by strategically choosing the categories in which to list their products. The analysis focuses on the relationship between category architecture and the type of information which can be credibly disclosed by firms’ category choices to consumers.

Suggested Citation

  • Fershtman, Chaim & Fishman, Arthur & Zhou, Jidong, 2018. "Search and categorization," International Journal of Industrial Organization, Elsevier, vol. 57(C), pages 225-254.
    • Handle: RePEc:eee:indorg:v:57:y:2018:i:c:p:225-254
    DOI: 10.1016/j.ijindorg.2017.10.002
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    References listed on IDEAS

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    Cited by:

    1. Wei Zhou & Zidong Wang, 2020. "Competing for Search Traffic in Query Markets: Entry Strategy, Platform Design, and Entrepreneurship," Working Papers 20-12, NET Institute.

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    More about this item

    Keywords

    Consumer search; Product differentiation; Categorization; Information revelation;
    All these keywords.

    JEL classification:

    • 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
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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