Ordered search in differentiated markets

Jidong Zhou ()

International Journal of Industrial Organization, 2011, vol. 29, issue 2, 253-262

Abstract: This paper presents an ordered search model in which consumers search both for price and product fitness. I construct an equilibrium in which there is price dispersion and prices rise in the order of search. The top firms in consumer search process, though charge lower prices, earn higher profits due to their larger market shares. Compared to random search, ordered search can induce all firms to charge higher prices and harm market efficiency.

Keywords: Search; Price; dispersion; Product; differentiation (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (39)

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Related works:
Working Paper: Ordered Search in Differentiated Markets (2009)
Working Paper: Ordered Search in Differentiated Markets (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:29:y:2011:i:2:p:253-262

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