EconPapers    
Economics at your fingertips  
 

A theory of search with deadlines and uncertain recall

Serife Akin and Brennan Platt

No 2012-3, Working Papers from University of Miami, Department of Economics

Abstract: We analyze an equilibrium search model where buyers seek to purchase a good before a deadline and face uncertainty regarding the availability of past price quotes in the future. Sellers cannot observe a potential buyer's remaining time until deadline nor his quote history, and hence post prices that weigh the probability of sale versus the profit once sold. The model's equilibrium can take one of three forms. In a late equilibrium, buyers initially forgo purchases, preferring to wait until the deadline. In an early equilibrium, any equilibrium offer is accepted as soon as it is received. In a full equilibrium, higher prices are turned down until near the deadline, while lower prices are immediately accepted. Equilibrium price and sales dynamics are determined by the time remaining until the deadline and the quote history of the consumer.

Keywords: Equilibrium Search; Deadlines; Uncertain Recall; Price Posting; Reservation Prices (search for similar items in EconPapers)
JEL-codes: D40 D83 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2012-01-12
New Economics Papers: this item is included in nep-com, nep-dge, nep-hpe and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Forthcoming: Under Review

Downloads: (external link)
https://www.herbert.miami.edu/_assets/files/repec/WP2012-03.pdf First version, 2012 (application/pdf)

Related works:
Journal Article: A theory of search with deadlines and uncertain recall (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mia:wpaper:2012-3

Access Statistics for this paper

More papers in Working Papers from University of Miami, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Daniela Valdivia ().

 
Page updated 2024-11-01
Handle: RePEc:mia:wpaper:2012-3