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On Search Theory and Customers

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  • Huberto María Ennis

Abstract

This paper studies a simple model of decentralized exchange where consumers have to search for a seller that provides the services they want. Once a buyer finds one of these “good” stores, a customer relationship between the two develops. We study the factors on which the formation of this link depends and some of their properties and characteristics. We define a Customers Steady State Equilibrium and give conditions under which one of these exists. Finally, we show how these customer relationships impose a certain sluggishness on the economy as it responds to changes in the cost of production.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Huberto María Ennis, 1998. "On Search Theory and Customers," Department of Economics, Working Papers 007, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
  • Handle: RePEc:lap:wpaper:007
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    Other versions of this item:

    • Humberto M. Ennis, 2000. "On Search Theory and Customers," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0(1), pages 3-21, January-J.

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