Bar-Isaac, Heski; Caruana, Guillermo; Cuñat, Vicente - Department of Economics and Business, Universitat … - 2009
Firms compete by choosing both a price and a design from a family of designs that can be represented as demand rotations. Consumers engage in costly sequential search among firms. Each time a consumer pays a search cost he observes a new offering. An offering consists of a price quote and a new...