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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, 2013. "Search and Categorization," MPRA Paper 53166, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:53166
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    References listed on IDEAS

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    More about this item

    Keywords

    Search; Categories; Advertising;

    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

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