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ORDERED CONSUMER SEARCH
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DOI：10.1093/jeea/jvx017.png)
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Abstract
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The paper discusses situations in which consumers search through their options in a deliberate order. Topics include: the existence of ordered search equilibria with symmetric sellers (all consumers first inspect the seller they anticipate will set the lowest price, and a seller that is inspected first by consumers will set the lowest price); the use of price and non-price advertising to direct search; how purchase history can guide future search; and the incentive a seller can have to raise its own search cost. I also show how ordered search can be reformulated as a simpler discrete choice problem without search frictions.
Keywords:
MODEL
EQUILIBRIUM
INFORMATION
DEMAND
ECONOMIES
DESIGN
COSTS
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