Multiproduct Search and the Joint Search Effect
AbstractThis paper presents a sequential search model where consumers look for several products from multiproduct firms. Multiproduct search can significantly influence firms' pricing decisions. For example, it can make market prices decrease with search costs. Possible applications of the model are also discussed.
CitationZhou, Jidong. 2014. "Multiproduct Search and the Joint Search Effect." American Economic Review, 104 (9): 2918-39. DOI: 10.1257/aer.104.9.2918
- D11 Consumer Economics: Theory
- D43 Market Structure and Pricing: Oligopoly and Other Forms of Market Imperfection
- D83 Search; Learning; Information and Knowledge; Communication; Belief