Partial-Depth Search and Search Pattern Comparisons

This paper compares consumers’ optimal search behaviors and firms’ strategic reactions in prices under two modes of search: parallel search vs. sequential search, with incorporation of partial search depth which measures the amount of information to evaluate for a product. Our analysis shows a series of new results: when products are evaluated partially, search depth is greater under sequential search than under parallel search; consumers search (on average) more products either under parallel search or under sequential search, depending on whether partial-depth search is chosen; equilibrium price is higher under parallel (sequential) search when search cost is high (low). Interestingly, sequential search might yield higher equilibrium prices with fewer products searched, compared to parallel search