This paper analyses the role of information in the search process. Ibuild a simple model of a good with two random attributes with somejoint probability distribution. I consider seemingly unimportant changesin this distribution, i.e. changes which neither affect expected utility norits variance....

I study a model of oligopolistic competition in which consumers search for prices, but have no idea about the underlying price distribution. Consumers' behaviour satisfies four consistency requirements such that beliefs about the underlying distribution maximize Shannon entropy. I derive the...