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I estimate demand for auto insurance in the presence of two types of market frictions: search and switching costs. I develop an integrated utility-maximizing model in which consumers decide over which and how many companies to search and from which company to purchase. My modeling approach...
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We study the identification of the search method consumers use when resolving uncertainty in the prices of alternatives. We show that the search method -- simultaneous or sequential -- is identified with data on consumers' consideration sets (but not the sequence of searches), prices for the...
Persistent link: https://www.econbiz.de/10013007058
How does advertising influence consumer decisions and market outcomes? We utilize detailed data on consumer shopping behavior and choices over bank accounts to investigate the effects of advertising on the different stages of the shopping process: awareness, consideration, and choice. We...
Persistent link: https://www.econbiz.de/10013003569
In many markets, consumers visit stores and physically inspect products before making purchase decisions. We view the inspection of a product at a retail location as a search for product fit. We quantify the cost and benefit from searching for product fit using a discrete choice model of demand...
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