Search and Ripoff Externalities
Mark Armstrong
MPRA Paper from University Library of Munich, Germany
Abstract:
This paper surveys models of markets in which some consumers are "savvy" while others are not. We discuss when the presence of savvy consumers improves the deals available to non-savvy consumers in the market (the case of search externalities), and when the non-savvy fund generous deals for savvy consumers (ripoff externalities). We also discuss when the two groups of consumers have aligned or divergent views about market interventions. The analysis covers two overlapping families of models: those which examine markets with price/quality dispersion, and those which exhibit forms of consumer hold-up.
Keywords: Consumer protection; consumer search; price dispersion; hold-up; add-on pricing. (search for similar items in EconPapers)
JEL-codes: D03 D18 D8 L13 M3 (search for similar items in EconPapers)
Date: 2014-07
New Economics Papers: this item is included in nep-com and nep-mkt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/57958/1/MPRA_paper_57958.pdf original version (application/pdf)
Related works:
Journal Article: Search and Ripoff Externalities (2015) 
Working Paper: Search and ripoff externalities (2015) 
Working Paper: Search and Ripoff Externalities (2014) 
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:pra:mprapa:57958
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().