A paradox of little pre-purchase search for durables: the trade-off between prices, product lifecycle, and savings on purchases

Sergey Malakhov

MPRA Paper from University Library of Munich, Germany

Abstract: The paper describes the microeconomic trade-off between prices, savings on purchases, and the time horizon of the consumption-leisure choice during the search for different products. When marginal costs of the search are equal to its marginal benefit, the time of search is proportional to products’ lifecycles and it is inversely proportional to starting prices.

Keywords: durables; time horizon; product lifecycle; saving on purchase; pre-purchase search (search for similar items in EconPapers)
JEL-codes: D01 D11 (search for similar items in EconPapers)
Date: 2012-03-11
New Economics Papers: this item is included in nep-com
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Citations: View citations in EconPapers (1)

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https://mpra.ub.uni-muenchen.de/37376/1/MPRA_paper_37376.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/42359/1/MPRA_paper_42359.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/57394/1/MPRA_paper_57394.pdf revised version (application/pdf)

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