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On the identification of the costs of simultaneous search


  • Moraga-Gonzalez, Jose L.

    () (IESE Business School)

  • Sandor, Zsolt

    (University of Groningen)

  • Wildenbeest, Matthijs R.

    (Kelley School of Business)


This paper studies the identification of the costs of simultaneous search in a class of (portfolio) problems studied by Chade and Smith (2006). We show that aggregate data from a single market, or disaggregate data from a single market segment, do not provide sufficient information to identify the costs of simultaneous search in any reasonable interval. We then show that by pooling aggregate data from multiple markets, or disaggregate data from multiple market segments, the econometrician can identify the costs of simultaneous search in a non-empty interval. Within the context of specific examples, we illustrate that identification of the search cost distribution in its full support may easily be obtained.

Suggested Citation

  • Moraga-Gonzalez, Jose L. & Sandor, Zsolt & Wildenbeest, Matthijs R., 2010. "On the identification of the costs of simultaneous search," IESE Research Papers D/867, IESE Business School.
  • Handle: RePEc:ebg:iesewp:d-0867

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    References listed on IDEAS

    1. Jun B. Kim & Paulo Albuquerque & Bart J. Bronnenberg, 2010. "Online Demand Under Limited Consumer Search," Marketing Science, INFORMS, vol. 29(6), pages 1001-1023, 11-12.
    2. Han Hong & Matthew Shum, 2006. "Using price distributions to estimate search costs," RAND Journal of Economics, RAND Corporation, vol. 37(2), pages 257-275, June.
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    More about this item


    search costs; portfolio choice; non-parametric identification;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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